The Finance of Industry

Abstract

All firms need to raise finance. Broadly long term finance is required to start a business and to finance its growth, while short term finance is necessary to bridge the gap between purchase of materials which are turned into output, and receipt of revenue from the sale of goods. The very survival of a firm depends on ensuring that inflows of funds are at least sufficient to meet maturing liabilities, that is, debts which are due for repayment.