business loan bajaj

Quick apply

Just 60 seconds to apply

Please enter your first and last name
Enter 10-digit mobile number
Please enter your Birth date
Please enter valid PAN card number
Please enter your pin code
Enter personal email address

I consent to the T&C and authorize Bajaj Finance Limited, its representatives/business partners/affiliates to use my details for promotional communication/fulfilment of services availed.

Thank you

Corporate Finance

Corporate finance plays a vital role in every business. Irrespective of the size or type of business operations, every company seeks to streamline its corporate financing arm for optimum wealth distribution and return generation.
Corporate finance meaning thus extends to an array of financing and investment decisions that encompass four primary aspects, viz:


  • Planning finances

  • Raising funds

  • Investing

  • Monitoring

Now, let’s look at its in-detail meaning and scope.

What is corporate finance?

Corporate finance refers to activities and transactions related to raising capital for the creation, development and acquisition of a business. It is directly related to company decisions which have financial or monetary impacts. It can be considered as a liaison between the capital market and the organisation. The corporate finance definition also encompasses effective resource utilisation and expenditure minimisation. Factors that contribute to its decision include term requirements of the company, urgency, risk appetite, etc.

A business undertakes such decisions to achieve pre-set financial goals while ensuring maximisation of shareholder value.

Apart from understanding what corporate finance is, understand what it covers.

Scope of corporate finance

  1. Investment decisions that include analysis of different investment types to arrive at the best available alternative.

  2. Financing decisions that extend to raising capital through different sources to restructure business finance.

  3. Dividend decisions which include analysis of stockholders’ returns basis amount and time.

  4. Management of working capital for efficient day-to-day running of the business.

  5. Corporate financial services extending to the advisory role during M&As.

  6. Development of financial strategies for policy implementations, which also reflect the working of advanced corporate finance.

Types of Corporate Finance

Corporate financing includes raising funds via either:

  • Equity funds

  • Debt funds

The types of corporate finance also emphasise the difference between ownership and management, the basis for the development of strategies and procedures under this concept.

  1. Owner’s funds – Equity or ownership finance is strictly limited to raising capital for the owners of a company.

  2. Debt funds – Also known as external finance, debt funds come in multiple options like debentures, corporate loans, private financing, etc. While debentures can be issued to the general public for refinancing, institutional lenders are the primary source of private finance. They also charge commercial rates of interest on the lent amount. For example, a business has to pay a pre-determined interest to the lender as per the corporate loan interest rate if it opts for corporate finance.

Availing corporate finance in India is made easier by lenders like Bajaj Finserv offering a range of loans to help finance a business’s capital. It includes unsecured business loans, SME & MSME loans, plant & machinery loans, etc.

Additional examples of corporate finance

Some other corporate finance examples which can help in raising capital include –

  • Issuing company bonds

  • Avail loans and advances from NBFCs

  • Opting for ROVs (Real Options Valuations)

Complete the planning to monitoring stages of corporate finance to make suitable decisions regarding raising capital and investing. Accordingly, analyse and implement refinancing and restructuring strategies that help maximise the business’s returns.

 

How Flexi Business Loans Result in Lower EMI Amounts

Tips to Responsibly Pay-off Your Small Business Loan

Why your business should opt for debt financing

Why your business should opt for debt financing

Why You Should Take a Business Loan to Pay Your Business Bills and Reduce Debt?

People Also Considered

Working Capital Loan People Considered Image

Working Capital

Manage operational expenses
Up to Rs. 32 lakh | Flexible tenor options

KNOW MORE
Machinery Loan

Machinery Loan

Funds to upgrade machinery
Up to Rs. 32 lakh | Pay only interest as EMI

KNOW MORE
Digital Health EMI Network Card

Digital Health EMI Network Card

Instant activation with a pre-approved limit of up to Rs. 4 Lakh

GET IT NOW
Business Loan for Women People Considered Image

Business Loan for Women

Avail customized loans
Up to Rs. 32 lakh | Minimal documentation

KNOW MORE