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Q.

What is the difference between Funding and Financing ?

Asked by Roshan, 20 Dec '08 10:51 am
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Answers (2)

1.

Funding is the primary stream of revenue used to offset cost or to support various leveraging options. Finance is the means by which the primary revenue streams are manipulated to make funds available when needed or to reduce the costs of borrowing.

By way of illustration, in the case of bonds issued against revenues from a tax dedicated to transit use, the revenue stream from the tax pledged as security for the bonds would be the funding. The bond proceeds, which concentrate the long-term tax revenues into several years to meet construction expense, would be the financing.
Answered by Joseph Chacko, 20 Dec '08 11:09 am

 
  
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2.

The main difference between Funding and Financing are as follows:
Funding - It is the 1st or starting stream of revenue used to offset cost or to support various leveraging options.
Finance- It is the means by which the primary revenue streams are manipulated to make funds available when needed or to reduce the costs of borrowing.

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Answered by Probondins, 23 Sep '11 02:41 pm

 
  
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