How is corporate Finance different from Normal Finance ?

Sir I think by normal finance you mean indevidual retail finance. For indevidual needs nanks have indevidual bank loans, overdrafts for sole proriatorship, and partnership trading firms. Letter of credits , discounting services for bills of exchange but normally there is another dept for corporate finance. The amount is much larger. A corporate loan is generally sanctioned by the top management when small amount of retail finance loans are sanctioned at the branch level.

• Also corporate financeat least in India has changed after liberlisation of the India economy.
• In early days companies used to park their funds in US664 the only mutual fund in the market in the pre1990 era. Now they have lots of optins.
• Forieign investment in corporate finance has gained importance as corporates go global .
• The latest is the JET airlines FINANCIAL deal with an ABU DHABI based airline which of interest in the G.C.C region.

Corporate finance deals with the financial decision making that a corporation makes in its day to day operations. It focuses on using the capital the corporation currently has to make more money while simultaneously minimizing risks of certain decisions. The ultimate goal is to increase wealth of the corporation’s shareholders.

Business finance has a focus on the financial decisions made in all types of business – including, but certainly not limited to, corporations. Business finance deals with the same underlying concept of raising capital for business use, but also incorporates capital management. Managing accounts receivable.

Corporate Finance:

• The financial activities related to running a corporation.

• A division or department that oversees the financial activities of a company. Corporate finance is primarily concerned with maximizing shareholder value through long-term and short-term financial planning and the implementation of various strategies. Everything from capital investment decisions to investment banking falls under the domain of corporate finance.

Normal Finance:

• A branch of economics concerned with resource allocation as well as resource management, acquisition and investment.. Simply, finance deals with matters related to money and the markets.

   

• To raise money through the issuance and sales of debt and/or equity.