INSTRUMENTS OF BUSINESS FINANCE, Instrument of business finance also called Financial Instrument are a physical or electronic document that has intrinsic monetary value or transfer value. An instrument is a means by which something of value is transferred, held, or accomplished. In the field of finance, an instrument is a tradable asset, or a negotiable item, such as a security, commodity, derivative, or index, or any item that underlies a derivative.
EXAMPLES OF INSTRUMENTS OF BUSINESS FINANCE,
Financial instruments may be divided into two types: cash instruments and derivative instruments.
Debt-Based Financial Instruments.
For example, cash is a financial instrument.
A contractual obligation is also a financial instrument as a deed that records home ownership.
INSTRUMENTS OF BUSINESS FINANCE
We can divided sources of finances according to the value of finance required in three categories:https://www.quora.com/What-are-the-basic-instruments-for-business-finance
A-Very High Value of Finance Required:
2-Debentures / Bonds Issuance at Stock Exchanges
3-Long Term Loan from Banks (Note: for new business State Banks of every country offer long term loans at subsidized markup rates & on easy terms)
4-Private Financing (also known as Private Placements of shares/debentures)
B-Medium Value of Finance Required: INSTRUMENTS OF BUSINESS FINANCE
1-Long Term/Short Term Loans from Banks (Note: for new business State Banks of every country offer long term loans at subsidized markup rates & on easy terms)