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What is Difference Between Finance and Financing

One of Accounting Education fan at Facebook wants to know the difference between finance and financing. Finance and financing are used as synonyms in finance field. But there is big difference between both terms. Financing is just part of finance. It means to provide money for specific purpose. Deficit financing, education financing, financing a car, financing for working capital and financing for a new business. All's meaning is to providing loan or money. Finance is also used for same purpose but finance is deep science. It means effective use of limited money for increasing return, net worth without losing in different risks. Whole finance field are doing work day and night in it. Some are doing financial analysis, some are managing risk and some are operating in financial market.

In my words,

" Without finance, financing is meaningless but without financing, finance is still meaningful."

COMMENTS

: 3
  1. Prof. Vinod Kunar defined clearly the difference between Finance and Financing. Actually, the terms are very easy to understand and simple but some people normally get confuse the differences. It's good question for clarifying the mistakes of the basic terms. In addition to Prof. Vinod Kumar, I like to define the terms in an easy language briefly.

    Finance:
    Finance is a branch of economics that deals with the management of funds, financial resources and other assets. In broader terms, finance is raising or investing money either as equity or debt.

    Financing:
    The process or means of acquiring capital necessary to conduct a business activity. Two of the most common forms of financing are debt financing and equity financing.

    I hope to see you on Facebook "Riyaj Shah"

    ReplyDelete
  2. '''
    thanks for providing difference b/w finance & financing''''

    ReplyDelete
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Accounting Education: What is Difference Between Finance and Financing
What is Difference Between Finance and Financing
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Accounting Education
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