Understanding Business Financing: A Comprehensive Guide
What is Business Financing and What Types Exist?
Business financing refers to the liquid assets or means of payment available to a company to meet its cash needs. These sources can be classified according to three criteria:
Classification by Term
- Short-Term Financing: Repayment period is less than a year (e.g., supplier’s credit, bank loans).
- Long-Term Financing: Repayment period is greater than a year (e.g., long-term loans and borrowings).
- Indeterminate Term Financing: Repayment period is indefinite
Foreign Exchange: History, Characteristics, and Processes
What is Foreign Exchange?
Foreign exchange (forex, FX, or currency market) is the global decentralized market for exchanging national currencies. It facilitates commerce, trading, and tourism, encompassing buying, selling, and exchanging currencies at current or determined prices. This continuous, nonstop market differs from financial markets where currencies are borrowed and lent.
History of Forex
While currency conversion for financial gain has existed since the advent of currencies, the modern
Read MoreEuropean Central Banking and Spanish Credit Institutions
The European System of Central Banks (ESCB)
The ESCB comprises the European Central Bank (ECB) and the central banks of all European Union Member States. It’s important to distinguish between the central banks of the Eurosystem (using the euro) and those of states that retain their own currency.
The ECB’s primary function is to fulfill the tasks assigned by the European Union Treaty. The ESCB has two main bodies: the Governing Council and the Executive Board. There is also the General Council,
Read MoreBusiness Legal Structures
Individual & Legal Persons
Individual
A person from birth, who begins to have rights and obligations. Legal capacity can be fully exercised from the age of 18.
Legal Person
A person with rights and duties, engaging with public administration and potentially others in economic activity.
Self-Employed Individuals
An adult with unrestricted legal capacity, exercising regular business activity responsibly in their own name. Personal liability is unlimited, with present and future assets subject to tax
Read MoreBoosting Spanish Exports: A Guide to Public Support & Financing
The Spanish Institute of Foreign Trade (ICEX)
The Spanish Institute of Foreign Trade (ICEX) is a public entity under the Ministry of Commerce. Its primary goal is to design, coordinate, and execute promotional activities that encourage Spanish companies’ export activities and boost their presence in foreign markets. ICEX also offers information services and assistance to Spanish companies looking to enter international markets. It collaborates with commercial offices abroad, as well as territorial
Read MoreMacroeconomics: Understanding Aggregate Demand and Supply
Macroeconomics
Overview
Macroeconomics studies the economy as a whole. Its primary objective is to achieve a growth rate that meets increasing demands, ensures full employment of resources, and maintains stable prices. This involves understanding several key factors:
- Internal Market Forces: The interplay of supply and demand within a country’s domestic market. Production levels depend on the willingness of businesses to sell and consumers to buy.
- External Shocks: Events like political conflicts, natural