The financing is the Contribution of money, monetary contribution that an individual or a company make and that is required to be able to carry out a project or activity, such as developing your own business or expanding an existing one.
Contribution of money that a company or person makes in favor of another with the aim of promoting or creating a business
Generally, the most common ways to obtain financing is through loans or credits , which may be delivered by individuals, for example relatives, friends, among others, or financial entities especially dedicated to the delivery of credits, such is the case of banks. "My sister needed financing to open her clothing business and with my father we lent her the money she needed.”
Loans, mortgages and credit cards, the main means of financing, granted by entities that charge interest for them
It should be noted that those who lend the money, especially financial entities, normally charge interest for the loan delivered in a timely manner, at a previously stipulated interest rate.
Financing can be to short term (when the term stipulated for the return of the borrowed money is less than one year), or failing that, to long term (When the term established for the return of the money is greater than the previous one, that is, more than a year or directly when there is not even such a commitment, because the financing was carried out from own funds or from a friend , relative who does not request it, for example).
Of course, the interest charged for the loan will of course be added to the stipulated amount to be repaid.
There is no delivery of a loan without the mediation of an interest.
One of the most common cases of request for credit from a bank by an individual is to be able to access the purchase of a home.
Mortgage loans, as they are called, are requested at banks, and applicants must meet certain conditions to be able to access them, and it will be considered once a full payment has been granted in several years, a fact that will allow a person or family have access to a house in the short term and can pay for it over the years.
On the other hand, in the particular case of a person, a typical way to finance oneself, to be able to buy something that he wants, but that at the moment of wanting to buy it does not meet all the required funds, is through a credit card.
The person will pay the good in question through the credit card in his name, in one payment or in several, according to what is available and according to the needs, while the total amount of the product or the installments will be paid at the end or beginning of the month when the card summary arrives.
Credit cards today offer minimum debt payments and the total owed can be refinanced, also depending on the client's payment possibilities.
Of course that refinancing will involve the application of an interest.
This situation is inadvisable because the interest they apply is certainly high and then you end up paying fabulous amounts for the acquired goods.
Experts advise using credit cards responsibly in order to be able to face payment in a timely and proper manner and not have to resort to these refinancing, which turn out to be highly onerous traps.
Although, the aforementioned lines above, is not the only financing classification, also, there is another distinction depending on the origin of the borrowed funds.
So, in this way we find two other types of financing: external (which will come from investors who are not part of the company in question, such is the case of banks, credit companies, among others) and internal (Unlike the previous one, it will be the one that is achieved from the company's own financial means, such as: reserves, sales of some type of good, for example, a machine in disuse, but in perfect working order. operation and that has an important market value, which is sold at a good value and that money that comes in from its sale will be reinvested to carry out some action or project).
