Below the primary functions done by business finance are listed.
• Business finance performs allocation of resources to various business processes.
• Through business finance funds are procured for various investments into the business.
• By allocating resources properly in every process wastage of funds is minimized & effective utilization of funds is made sure.
• Business finance also helps in marketing the finished goods of a business by allocating required amount of funds for it.
• Even everyday office expenses are met through business finances.
Importance of Business Finance:
Business finance is a must for the establishment of every business organization. As businesses grow financial requirements of them grows simultaneously. Funds are required for every activity of a business, be it purchase of land for setting up of a factory or everyday expenses like payment of bills & wages. A business incurs expenses until the goods are sold. So money is required to bridge this gap between production & sales. This money is made available through business finance. Also various investments need to be made when a business is in operation or during the start up days. All the funds required for this is made available through business finance.