Digital Garden of Paul

Three meanings of finance 💰

Finance can be used in three different forms.

The first form is in the meaning of attracting debt. For example; in what way have you financed your car?

Raising capital is another form of finance. This is broader than debt, as this could also be achieved by issuing shares. Typically this is being called passive financing.

Lastly there is finance in the terms of raising and using capital. This is not only about passive financing, but also active financing.

Three meanings of finance 💰