Financement

Financement refers to the act of providing or arranging funds for a purchase, project, organization, or activity. The term encompasses the planning, sourcing, and management of capital and follows a lifecycle from needs assessment to repayment or exit. In practice, financement involves balancing the availability of funds with cost and risk, and it is central to corporate finance, entrepreneurship, public policy, and nonprofit administration.

Sources of financement can be internal or external. Internal funding relies on the organization’s own cash flow, reserves, and asset monetization. External funding includes debt financing (bank loans, bonds, lines of credit), equity financing (venture capital, angel investors, initial public offerings), and grants or subsidies from government or international bodies. Modern approaches also include crowdfunding and crowdinvesting, which pool small investments from many supporters. Public financing may involve subsidies, guarantees, or grants to support specific projects.

Common instruments and arrangements include loans and credit facilities, equity investments, bonds and notes, convertible instruments, leases, and grants. Financing decisions depend on factors such as cost of capital, maturity, covenants, control implications, and regulatory constraints. The choice between debt and equity affects risk, leverage, and ownership, while mixed or hybrid instruments can tailor risk sharing.

Financement is used in business, local and national government, infrastructure projects, research institutions, and nonprofit entities. The process typically involves planning, due diligence, term negotiation, structuring, disbursement, and monitoring, with ongoing risk management for interest rate, currency, liquidity, and credit risk. Regulations governing financing include corporate law, securities and banking regulation, and anti-fraud measures. Effective financement supports growth and innovation while maintaining financial stability.