The act of providing money in the form of a loan or capital is known as finance and is something that everyone from governments to the private individual uses. This is part of the area of economics that focuses on the strategies and methods of looking after money and other financial assets. It can be also defined as the management of funds and capital required by a business and private activities. Large companies with even larger portfolios will employ a finance manager to help control their assets.

This involves lending money to another company or individual, either from internal resources or externally. The word Optimizing may sound strange but it refers to taking measures that minimize the cost of financing while simultaneously attempting to maximize the profits out of the employed finance. Bad debts are poor finance management where rules have not been followed; the result of this is depressed markets, low production and a cash crisis. For this reason, a finance manager is expected to be very judicious in either the use of available funds or allocation for expenses.