Funding needs:
To carry on business, the company
must acquire and combine factors of
production. Thus it should purchase machinery, and raw materials, pay the staff to deal with tax and social maturity. All these obligations to disburse funds are the financing needs of the business.
1-Needs appearing at the creation of the company: At its launch, the company must procure goods intended to remain permanently in it. Thus, a need for industrial machinery, buildings ... for the manufacture and sale of production; All these are investments.
In addition, the company that is created should be in stocks, pay suppliers, staff, etc.. Before receiving the first revenues from its sales, the need for funding is the funding requirement associated with the
operation.
2 - Needs appearing during operation of the company: During his life, the company needs to make further investment to cope with the wear, with the obsolescence of old equipment and needs to increase production.
By the same token, if the company sees its business grow and it must have more stock and more funds to pay its employees .