What are financial resources?

The meaning of financial resources is the set of financial assets of a company that have a high degree of liquidity, in addition to cash.

Among other things, these financial resources consist of loans to third parties, money in cash, deposits in banks, owned by actions and bonds, and currency holdings, among other things.

Types of financial resources

The financial resources of a company can come from different sources, as we will see below:

  • The main one is derived from the basic activity of the company, which may be the commercialization of articles or a series of services that they provide to the market. In this sense, consumers, in exchange for a product or service, pay an amount of money determined by the business in question.
  • Loans from banks: to obtain more liquidity or to face new investments, companies resort to the credits of financial entities in exchange for an interest.
  • Investors: in some companies, the business shares are distributed among shareholders or partners. These are responsible for providing capital in order to later obtain a series of returns.
  • Government subsidies: governments quite often grant financial aid to companies for the hiring of personnel, renewal of equipment, etc.

The administration of the financial resources of an entity should imply the organization of the flow of funds in such a way as to avoid situations in which the financing of productive activities is not feasible, checking that the outflow of funds can be financed and there are no large costs financing.

In this sense, it is more important than ever to control budget, since it allows you to get a clearer idea about the inflows and outflows of money in the short-medium term, and at the end of that term to control it.

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