Financing refers to the process of providing funds for various activities, such as starting a business, buying a home, or funding education. It involves obtaining money from different sources, like banks, investors, or personal savings, to cover expenses or investments. Understanding financing is crucial for making informed financial decisions and managing resources effectively.
There are different types of financing, including debt financing, where money is borrowed and must be repaid with interest, and equity financing, where funds are raised by selling shares of a company. Each option has its advantages and disadvantages, making it important to choose the right method based on individual needs and goals.