Financing is the contribution of money that a company or individual makes and that is needed to carry out an activity or project, such as the development of one’s own business or the expansion of an existing one.
We can distinguish different types of financing according to various criteria
Short-term financing: The maximum time to return the financing received is limited to a maximum of 1 year.
Long-term financing: The time elapsed until the maturity and repayment of the financing is greater than 1 year.
Taking into account the origin of the funds
Internal financing: It has its origin in resources that have been produced in the company carrying out its activity (own funds, reserves, etc.).
External financing: The resources come from investors who do not belong to the company (bank financing, Crowdlending, etc.).