What is the difference between Funding and Financing ?
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.
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.