Financing in marketing – Some facts you need to know

Financing in marketing means the funds and credit employed in the business. Finance is the foundation of a business. Finance requirements are to purchase assets, goods, raw materials and for the other flow of economic activities. Let us understand in-depth the Meaning of Business Finance.

Understanding financing in Marketing

Financing in marketing according to B.O. Wheeler means Business Finance that includes those business activities that are concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall objectives of a business enterprise.”


Business is identified with the generation and circulation of products and services for fulfilling of needs of society. For successfully doing any operation, business requires money which is known as business finance. Therefore, funds are known as the lifeblood of any business. A business would not function unless there is adequate money accessible for use.

Financing in marketing becomes necessary because the capital contributed by the businessman to establish the business isn’t adequate to meet the financial needs of the business. Consequently, the businessman needs to search for an option to generate funds. A research of the financial needs and options to fulfill those needs must be done with a specific end goal to arrive at effective financial management to maintain the business.

Fundamental necessities of financing in marketing

The fundamental necessities of financing in marketing would be to buy a plant or apparatus, or it could be to buy raw materials, development of a business that prompts more enrollments, paying wages and so on. The money related necessities of a business can be classified as follows:

Fixed Capital – Financing in marketing

Financing in marketing is very crucial, it helps to meet the initial needs of  beginning a business, money is required to buy fixed assets like land, building, plant and machinery. This is called the Fixed Capital Requirement.

Working Capital

A business needs funds for its day to day activities. This is known as Working Capital Requirements. Working capital is required for the purchase of raw materials, paid salaries, wages, rent, and taxes.


A company needs more funds to diversify its activities to become a multi-product company. ITC

Technology upgrading

Finances are needed to adopt the latest technology for example use of particular software and the latest computers in business.


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