Business finance, or business financing, refers to the way in which a business obtains funds for starting, maintaining, or expanding business operations. These may include monetary contributions from various sources and may be used for different purposes. For instance, business finance may be necessary for things like:
- Purchasing business property
- Putting a down payment on business office rental space
- Obtaining production machinery, stoves, etc.
- Buying materials for initial production runs
- Conducting market product research
- Purchasing inventory/stock of product
- Various other expenses
Thus, business financing planning may be essential in order to help get a business started. Many professional organizations specialize in assisting businesses with financing.
Where Does Financing Come From?
Businesses can obtain financing from several different sources, including:
- Lending institutions that specialize in business financing
- Donations from various sources
- Loan companies
- Business grants
- Cooperation with other businesses
Some businesses may use a variety of sources to help with financing. Also, a business may need to adjust their financing sources over time, especially as the company expands and begins incurring new business costs.
Legal Issues to Consider with Business Finance
One of the main legal issues when considering business finance is the issue of repayment. In most cases, the original financing source needs to be repaid the money that they provided. The terms for repayment may be finalized into a contract for repayment over time.
Another issue to consider is the size of the business. For instance, financing a small business may be drastically different from financing a large corporation or a non-profit organization. Rules may vary depending on the nature of the business as well as state laws.
Do I Need a Lawyer for Help with Business Finance Laws?
Business financing is an important part of running or starting a business. It is in your best interests to hire a qualified business lawyer if you need help with business finance issues. Your attorney can provide you with legal advice and can assist during financing negotiations and contract meetings. Also, if you are facing any particular legal issues involving business financing, your attorney can represent you in court as needed.