Business finances are concerned with the estimation of funds and the raising of funds from different sources. Business finance refers to money and credit employed in a business. It involves the procurement and utilization of funds for business purposes.

1. Business finance includes all types of capital or funds used in business.

2. Business finance is needed in all types of businesses large or small, manufacturing or trading, and so on.

3. Business finance is a wide term. It involves not only the estimation of the number of funds but also the sources of finance, investment of funds raised, management of cash disposal of earnings, and control of funds.

4. The amount of business finance required differs from one business firm to another depending upon its nature and size. It also varies from one time period to another.

5. The availability of finance determines the scale of operations of the business.