what is financing?

Answer 1

It's where you get a bank/lender to agree to give you x amount of money for y amount of time, usually with interest (meaning you have to pay back a certain percent more than what you borrowed). Usually you will have one payment of month until you have paid back the full amount. This is leyman's terms. Hope it helps :)

Answer 2

It usually means the lending of money, for example to buy a house or a car, or to start a business.

For most major purchases and expenditures like these, people do not have the cash. In order to complete the transaction, the buyer must secure fincancing, in other words apply for and get accepted for a loan..

The buyer promises (in writing, on a contract) that they will pay back the money over a period of time. I most cases, the lender (usually a bank or similar financial institution) retains ownership of the house, car or some stake in the business, as security to encourage the borrower to pay off the loan.

That's why you read of a bank repossession. If the borrower refuses or is unable to pay, the lender takes posession of the secured property and is free to sell it in order to recover what money it can.

Answer 3

If you are unable to purchase an item, say a car, you can "finance" the purchase by borrowing the money from a lender, then paying them back with interest.

Your credit card is a rudimentary form of financing; the credit card company pays the vendor, then you pay back the credit card company in installments, plus interest.

Answer 4

pay over time