Two financing needs can be identified :
Medium and long-term needs or investment needs
These are expenses incurred to constitute sustainable resources required for the company's activity.
Some examples of investments: certain costs incurred during the creation of a company, the purchase of land, buildings, their renovation or development, the purchase of property or vehicles, or even an investment in a company's share capital, etc.
These investments appear in the assets on the balance sheet as fixed assets (immovable assets) which may be tangible, intangible or financial.
Short-term needs or working capital needs
These are expenses incurred during the company's operating cycle.
This essentially concerns the management of various types of stocks (raw materials, work in progress, finished goods, etc.), orders, various forms of credits and cash flow (in the broadest sense of the term).
This includes items recorded on the balance sheet as current assets.