NEED FOR INDUSTRIAL FINANCE * A business firm, whether it is owned by an individual proprietor Or partners or shareholders, undertakes business in anticipation of future gain or return from it. For setting up in business the firm has to make advance expenditure before it receives any return. * The machines are to be purchased, the factory space is to be purchased or leased, raw materials are to be bought and wages and salaries arc to be paid to the employees for their services Finance is needed to undertake all such activities in business.NEED FOR INDUSTRIAL FINANCE CONTD.... * The money which the firm commits on its business is expected to come back to the firm in the form of return m due coursed of time. The firm has to wait for this. Similarly, a manufactures has to produce goods be ore he can sell them He can do only when he has adequate finances for production of his goods. It is true that some industries goods are sold before they are made but even in such industries the entrepreneurs need finance to equip themselves for necessary facilities of production of the goods and services. Finance is thus a necessary precondition for business both for its initiation and smooth running