Financial resources

What are financial resources?

Financial resources are those resources that make up the cash pool Y assets with a certain degree of liquidity, that is, with the capacity to be transformed into cash.

These resources are composed of cash, bank deposits, loans, checks, among others. In this way, they represent one of the sources to meet the objectives of an organization.

Types of financial resources

Financial resources can be classified into own and others.

Types of financial resources of a company.

Own resources

Also known as heritage, own resources they belong entirely to the company. These might be:

• Cash: all the money that a certain company or organization owns, with the capacity to be used for investments.
• Investors: in some companies they participate partners or shareholders, who provide the capital to later obtain benefits from said company (shares).
• Utilities and reserves: the money that arises from the commercialization of goods and services.

Foreign resources

External resources are resources that do not come from the company's own capital, but are subject to external financing, so they are payment obligations.

These complement the company's capital availability and can be:

• Loans from creditors and suppliers: that financial resource (product or service) with liquidity capacity that the company possesses, but which it owes to a supplier or creditor.
• Bank or private credits: to be able to maintain themselves and carry out new investments, companies use the credits offered by banks, and which in turn are compensated by paying determined interest.
• Issuance of securities: stocks, bonds, public titles, among others.

Importance of financial resources

Financial resources are one of the most important resources of an organization, since make up the main means of making investments that allow to achieve the objectives.

In this way, as financial resources allow financing the company in question, they are the sustenance of it. Thanks to these, the growth and development of organizations is achieved.

Examples of financial resources

Some examples of financial resources are:

• Cash.
• Profits from the products and services performed.
• Contributions from partners or shareholders.
• Stocks, bonds, titles.
• Utilities.
• Credits.
• State subsidies.