Business finance is a broad term that encompasses matters regarding loans, investments, and the management of monetary resources. While business finance is required in all businesses, it is particularly important for small businesses since they are usually borne by the owner alone. There are many different types of business finance including the following: business loans, business lines of credit, business finance loans, merchant cash advances, venture capital, franchise financing, and indirect corporate funding. All of these can be combined for a single loan or be used separately as needed.
One of the main functions of business finance is to facilitate and analyze the financial matters of the business firm. This includes devising a sound business plan, evaluating the risks and rewards associated with different business ventures, evaluating financial results, analyzing the options for future funding, and determining which business operations need to be disrupted or changed due to cash flow issues. In order to perform these functions, various other financial services have to be coordinated and applied. Finance managers also need to ensure that all involved in the business finance functions are aware of current and future financial demands and expectations of the company. Finance managers are also responsible for making sure that the financial matters of the company are maintained at satisfactory levels to avoid problems and complications in the future.
A business finance manager’s major functions include preparing the financial statements, preparing reports, analyzing the financial statements, analyzing the business plans, advising owners and management concerning strategic planning, advising lenders on business finance matters, providing debt management advice, arranging for necessary internal transfers, negotiating with external funding sources, negotiating with related parties, managing the business cash flows, performing contract administration functions, and dealing with legal and regulatory matters. A management consultant also ensures that all aspects of the financial reports and related financial statements are prepared correctly.
He is in charge of collecting the reports from different financial sources and presenting them to the company owners and management for review and interpretation. He presents the information gathered in the reports in a organized manner and makes recommendations as to what should be done in the future. Other functions of a management consultant may include preparing presentations for investors, suppliers and stakeholders. He prepares reports regarding the financial results of the company and its business projects and advises other members of the company about certain aspects of the business such as expansion strategies and business development.