The act of providing funds for business activities, making purchases or investing. Financial institutions and banks are in the business of financing as they provide capital to businesses, consumers and investors to help them achieve their goals.

Investopedia Says:
There is a large variety of financing techniques that businesses and consumers can use to receive financing; these techniques range from IPOs to bank loans. The use of financing is vital in any economic system as it allows consumers to purchase products out of their immediate reach, like houses, and businesses to finance large investment projects.

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Securement of funds from outside sources such as by borrowing or by attracting equity control. Use of leverage to improve the profitability of a business. Achievement of an investment return on the borrowed funds at a higher rate than the interest being paid for the use of the funds.

Borrowing money to buy property. See Creative Financing.
Examples: The following are examples of financing:

• obtaining a Mortgage loan on a purchase

• assumptions of a mortgage from a seller

• arranging for the seller to take a loan as part of the purchase price

• arranging an Installment Sale

noun

Money or property used to produce more wealth: backing, capital, capitalization, funding, grubstake, stake, subsidization. See help/harm/harmless, money.

IN BRIEF: Providing money for.

That company was thinking of financing a theater group for the town.

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