Financing Options: The Role of the Financial Manager

The Role of the Financial Manager

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Where do businesses, both large and small, get the money they need to start up and stay operational? Once a financial plan is in place, many businesses turn to outside financing. This page will walk you through the various options businesses have for obtaining funding.

So far, we've focused our attention on the financial environment in which U.S. businesses operate. Now let's focus on the role that finance plays within an organization. In Chapter 1 "The Foundations of Business", we defined finance as all the activities involved in planning for, obtaining, and managing a company's funds. We also explained that a financial manager determines how much money the company needs, how and where it will get the necessary funds, and how and when it will repay the money that it has borrowed. The financial manager also decides what the company should do with its funds - what investments should be made in plant and equipment, how much should be spent on research and development, and how excess funds should be invested.

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