What is finance?

The term describes a way of making some project monetarily feasible. If the project is the purchase of an item, the development of a property, the starting of a business, obtaining an education, whatever the project may be that requires money to achieve it in some fashion, the term “finance” is used to refer to the way the money is obtained.

That said, there are only two ways to finance anything: with debt or with equity. Debt is where you go to a lender and take out a loan; equity is where you use your savings or find an investor who is willing to put up his/her money for an ownership interest in whatever is being acquired or produced.

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