Getting financing into perspective

Not counting the speculative investors and the various kinds of capital that might be introduced at the birthing stage of an e-business startup, all other forms of financing need to have some basis in rationality.

This basis must, in some way, be related to the four cornerstone concepts of finance and investment calculation:

1) Discounting through time

2) Turning an income into a capital value

3) Turning a capital amount into an income stream

4) Discounting for risk

It is worth noting that all banking, insurance, pension and investment industries are based solely upon these four important concepts. All financiers, and anyone seeking finance, should fully understand the conceptual mind set they represent.