Simple English definitions for legal terms
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Financing: Financing is the process of getting money to pay for something. It can be done by borrowing money from a bank or other financial institution, selling stocks or bonds, or using money generated by a company's operations. There are different types of financing, such as debt financing (borrowing money by issuing bonds or notes) and equity financing (raising money by selling shares in a business). Project financing is a type of funding used for large and expensive projects, where the lender looks primarily to the money generated by the project as security for the loan.
Definition: Financing refers to the act or process of raising or providing funds. It can also refer to the funds that are raised or provided.
Examples:
These examples illustrate different types of financing methods that companies can use to raise funds. Debt financing involves borrowing money that must be repaid with interest, while equity financing involves selling ownership in the company. Project financing is a specialized type of financing used for large, complex projects that generate revenue over time.