APT Initiatives
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Established in 1999

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Finance

Funds used to pay for goods and / or services which enable a business to operate. Businesses need finance for two main reasons: (1) To pay for the day to day running costs, and thus pay for goods and services which have either already been used or will be used shortly, eg stocks of raw materials, labour costs, energy costs, repairs and maintenance, etc. This type of finance is known as working capital finance or revenue expenditure. (2) To pay for the purchase of assets which may be used repeatedly over a long period of time, such as premises, fixtures and fittings, machinery, equipment, vehicles. This type of finance is known as fixed asset finance or capital expenditure.

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