What Is Commercial Funding?

Commercial funds are the prerequisites for commercial operations. Without commercial funds, commercial operations cannot be generated. The basic prerequisite for independent businessmen is to have a considerable amount of commercial funds, which is a currency payment method for merchants to engage in purchasing activities. Commercial funds are the medium of commodity exchange. It solves the contradiction in the exchange of goods and materials. When people exchange goods and goods, one of them does not need the other's goods temporarily, or does not need so many goods, so the other party It is impossible to realize the value of one's own goods or the value of the other's goods. When commercial funds are used as a currency medium for commodity exchange, this contradiction is resolved. ^[1]

Business funds

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Commercial funds are the prerequisites for commercial operations. Without commercial funds, commercial operations cannot be generated. The basic prerequisite for independent businessmen is to have a considerable amount of commercial funds, which is a currency payment method for merchants to engage in purchasing activities. Commercial funds are the medium of commodity exchange. It solves the contradiction in the exchange of goods and materials. When people exchange goods and goods, one of them does not need the other's goods temporarily, or does not need so many goods, so the other party It is impossible to realize the value of one's own goods or the value of the other's goods. When commercial funds are used as a currency medium for commodity exchange, this contradiction is resolved. ^[1]

Commercial funds can be divided into:

Commercial funds can be divided into: commercial fixed funds according to their role in the circulation of commodities and their form changes. The monetary performance of fixed assets such as commercial buildings, technical equipment, and transportation vehicles. It is characterized by not directly participating in the circulation of goods, not the object of management, but serving the circulation of goods for a long period of time and maintaining its own physical form. At the same time, its value is gradually transferred to the circulation cost by amortizing the depreciation according to the degree of wear and tear, and it becomes a factor of the price to obtain compensation. Commercial liquidity. That is, the currency performance of commercial enterprises' current assets, including commodity funds, non-commodity funds and settlement funds. Commodity funds are funds that exist in the form of commodities, which include funds for inventory products, goods in transit, and products paid for processing; non-commodity funds include cash, packaging funds, furniture and appliances funds, and unpaid expenses funds; settlement funds are loans from enterprises Funds used in the settlement process. The characteristics of commercial liquidity are that they generally directly participate in the circulation of goods and constantly change their form. Among commercial funds, working capital is the main form, but the size of fixed funds is closely related to the material and technological level of commercial enterprises. In liquidity, commodity funds and monetary funds are the basic forms. The basic part of commercial liquidity is always distributed and recycled in different proportions between these two forms. From the perspective of the movement of funds, it is always in the commodity purchase stage that the currency fund form is changed to the commodity fund form; then in the commodity sales stage, the commodity fund form is changed to the monetary fund form. Unless there is a loss, there will always be more money returned through a cycle than the money invested, thus forming a profit. Part of the profit is accumulated, and the original monetary funds are added to expand the scale of business operations.

The funds for socialist commerce must be adapted to the scale of commodity circulation organized by the commerce, forming a reasonable proportion to ensure the normal development of commodity circulation. Socialist business must use funds (especially liquid funds) reasonably, and constantly accelerate the turnover of funds, especially liquid funds, in order to improve the utilization rate of funds, reduce the amount of funds, and achieve greater economic benefits.