Introducing finance is one of the most important factors to start a business. Finance meets the needs and objectives of the business firm for its expansion it is needed by a business concern not only for the expansion and growth but also for the survival of the business itself. Finance is the master key which provides access to all other resources. By contributing to the growth and development of a large number of industrial undertakings, finance helps the society to have a large variety of goods which they need. All managerial functions like planning, directing, control and co-ordination can be discharged effectively only if a business concern possesses adequate finance.
Depending on the nature of business, business finance is classified into three type’s namely short-term finance, medium-term finance and long-term finance.