External funding sources of business activity

Any business activity, regardless of whether it is a manufacturing, construction, commercial or service nature, requires financial commitment. One of the major challenges facing companies today is the difficulty in choosing the source of financing for the business. The choice of financing sources should primarily depend on the situation of company. In the case where an undertaking has limitations in financing activities in order to preserve liquidity, often uses external sources of financing. The most common form of external financing is a loan that is not always readily available to business entities, not because of high interest rates on loans but due the large financial restrictions applied by financial institutions. Enterprise finance management is a decision-making process subordinated to the achievement of a primary objective that is based on the use of various types of instruments, criteria, or rules to guide the processes of the enterprise. Money and fund come from a variety of sources, and different things may result in the achievement of the company's goals. The same money and fund can be used differently, while achieving better or worse economic results, making the proper management of its finances, including the appropriate choice of sources of funding as a key condition for the economic success of an enterprise is.