Learn about Finance, you may need it

The service of providing funds or capital for commercial or private reasons comes under the umbrella term - Finance. It can also be an expression used by specialists in the field when they look at how money is managed. If you prefer, it can also be a general term which encompasses the entire subject of managing and supplying money in the business and private sector. A company that has funds to manage will, more than likely, employ the services of a finance manager who is likely an expert in the field of economics.Simply put these managers arrange money to be lent to businesses or private individuals using either money already available from company accounts or from external lenders. The simple process of optimization is used to receive the most from these funds by reducing the cost of arranging the finance whilst at the same time ensuring returns are high. The fact is that it governs most of the worlds activities and poor finance management will immediately show up as conditions deteriorate in procurement, production and sales as it affects every sphere of business activities. The risks for a company are high if poor decisions are made and this is the reason finance managers do not last very long in this field.One of the most famous management gurus Lee Iacocca referred to finance managers as Bean-Counters who almost look at the expense part with a rather pessimistic view. The big difference between finance managers and sales managers is the direction they are facing; a sales manager is looking forward, towards the future. When arranging a business loan, many applicants forget that they are not to be used for personal matters; something that is ignored regularly. Managers are rarely impressed with this situation as they believe they have aright to know what their money is being used for.Businesses are gradually getting the message that they must behave more responsibly if they are to stand a chance of expanding in years to come. Small businesses are not however, restricted to using external finance companies because other sources do exist including their bank, friends and other types of private lender. The simple trick is for finance managers to arrange loans using outside lenders thereby protecting their own assets whilst maximizing their own profit simultaneously. Bob Hope once said that you can only get a loan from a bank if you can prove to them you have absolutely no need for it; advice which could not be more true.