What is difference between loan and finance?
loan is that amount which is taken from outside sources like any bank or any other financial institution but finance we can also provide by ourself like we can finance our business from our on personal source
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Account is a record or statement of recent transactions and resulting balance. Finance is the management of money and credit and banking and investments
commerce relates to the trade activities, exchange of commodities etc. while finance deals with budgeting, accounting,bookkeeping etc. finance is a subject in commerce.. co…mmerce is business,marketing,accounting,controlling these activities. while finance is focussed function related to inflows n outflows.
Accounts have to do with the daily records of financial activities of an organization. Accounts are managerial level it includes recording classifing summerising the results t…o the stake holders of the company. Finance deals with the admisterial level it includes various decisions like procurement of funds invest them in proper manner and distributing of funds to interested parties. Thus when compare the scope the scope of finance is greate than accounts. Accounts is the parts of finance whereas finance means the analysis of cost and fund for future requirements.
Financing is nothing but a complete process or department who works for providing loan or financing aid. Normally in Islamic banking Financing is the preferred word for loan a…nd related activities such as loan origination, disbursement and repayment/Collection. Finance means the department or process which maintain accounts /book keeping cash /Fund management and anything related to financial position of the organization.
syndication of loan is arranged by a lead arrangers and it is on common terms which is finalised between borrower and arranger where as in consortium loan borrower has to arra…nge the finance himself from different bank this finance on different term and at different pricing Loan Syndication and Consortium finance is resorted to when a client needs a huge loan which a single Bank either cannot provide or cannot take risk to provide. In Loan Syndication, a large bank approaches the client, fixes up the terms and conditions, interest rates etc. Thereafter, he approaches other Banks for "selling" of this loan. The other banks ,if agree, "purchase" a part of the loan on the same or different terms and conditions. In Loan Syndication, the client deals with one Bank only. In Consortium Finance, a Large Bank approaches the client, collects the information about amount of loan, terms and conditions and then calls a meeting of other Banks. Those who agree to lend the money approach the client and the client fixes up the loan with each of them separately. The follow-up and other jobs is done by the Leading Bank of the consortium which is mutually decided by the participating Banks.(Need not be the highest lender).
The main difference between loan syndication and consortium financeis that syndication is done based on common terms between thelender and borrower. Consortium finance has to …be arranged by theborrower, such as when one bank cannot accommodate the entire loanamount.
Accounting generally refers to how transactions are recorded and reported. Finance generally relates to initiating transactions to aid in cash, investment and other working… capital management - including interest and foreign exchange hedging. Some senior accounting or finance staff have cross-over in their jobs and perform both tasks.
Economics is a discipline that studies trade across all similar and dissimilar markets.it is a social science that deals with concepts like price and demand. Finance is a s…ubset of economics that studies the financial markets. The financial market is a market that brings together borrowers and lenders to allow them to trade.it can also be called a fund management science that deals with how the funds are allocated or arranged for in a institution.
Funding is money provided for a specific purpose, often by anorganization or the government. Financing is obtaining orfurnishing money or capital for an enterprise or purpose,… and isoften done by banks and other lending institutions.
The following is the distinction between Accounts & Finance: 1) Score keeping Vs Value Maximising: Accounting is concerned with score keeping, whereas finance is aimed at valu…e maximising. The primary objective of accounting is to measure the performance of the firm, assess its financial condition, and determine the base for tax payment. The principal goal of financial management is to create shareholder value by investing in positive net present value projects and minimising the cost of financing. Of course, financial decision making require considerable inputs from accounting. An accountant's role is to provide consistently developed and easily interpreted data about the firm's past, present, and future operations. The financial manager uses these data, either in raw form or after certain adjustments and analyses, as an important input to the decision making process". 2) Accrual Method vs Cash Flow Method: The accountant prepares the accounting reports based on the accrual method which recognises revenues when the sale occurs (irrespective of whether the cash is realised immediately or not) and matches expenses to sales (irrespective of whether cash is paid or not). The focus of the finance manager, however, is on cash flows. He is concerned about the magnitude, timing, and risk of cash flows as these are the fundamental determinants of values. 3) Certainty vs Uncertainty: Accounting deals primarily with the past. It records what has happened. Hence it is relatively more objective and certain. Finance is concerned mainly with the future. It involves decision making under imprefect information and uncertainty. Hence it is characterised by a higher degree of subjectivity.
Finance is generally related to all types of financial, this could be accounting, insurances, policies. Whereas banking is everything that happens in a bank only. The term …Banking and Finance are two very different terms but are often associated together. These two terms are often used to denote services that a bank and other financial institutions provide to its customers. Banking and finance is also referred to as a term of managing your money by investing it in either banks or other financial institutions. It is very important that you invest your money in case it is sitting idle. By investing your money, you have a high chance of making a profit on that money and you would be doing the country proud by investing as that money will be used for the betterment of the country and it will be returned to you after a fixed period of time along with the interest whenever you set the time limit.
A Banker who borrows money and lends money for the people is called as Banking.Whereas financing is the lending of money for the people with an interest for the use of people.…
Financing is done in own company or other investors by our companywhile investing is to put money in others company to earn interestprofit or dividend profit etc.
Money is the equivalent as a mean used for exchanging goods, services and carrying out payments .
An investment is to spend money to buy some permanent good, either for private use or to use as a tool to earn more money. The property you buy is also often called an investm…ent. Finance is the way you get the money before you spend it. You can finance something by saving until you have gathered enough money, by borrowing money, by leasing, by selling some property you already have, and many other ways.
money is just a sub-set of finance while finance include other resources
Accounting is a phylosophical science that helps to a language by which you can understand any information passed by a business. Finance is an important tool of a busuness …that helps to solve any kind of finantial problem faced by the business.