Editing Funding (section)

==Economics==
[[File:Flow of Funds.svg|200px|thumb|right|The flow of funds from lender to borrower]]
[[File:Grafik 220.jpg|thumb|201x201px|Types of financing/funding<ref>{{Cite book |last=Kaschny |first=Martin |title=Innovation and Transformation |publisher=Springer Verlag |year=2018 |isbn=978-3-319-78524-0}}</ref>]]
In economics funds are injected into the market as capital by lenders and taken as [[loan]]s by borrowers. There are two ways in which the capital can end up at the borrower. The lender can lend the capital to a [[financial intermediary]] against interest. These financial intermediaries then reinvest the money against a higher rate. The use of financial intermediaries to finance operations is called [[indirect finance]]. A lender can also go to the [[financial market]]s to directly lend to a borrower. This method is called [[direct finance]].<ref>{{cite book |title=The Economics of Money, Banking and Financial Markets |last=Mishkin |first=Frederic |author-link=Frederic Mishkin |year= 2012|publisher=Pearson Education Limited |isbn=978-0273765738 |page=68 |edition=Global, Tenth }}<!--|access-date=October 7, 2012 --></ref>