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The business world is the world's most exciting discussed in various forums, both national and international. It is because the world of business is the backbone of a country's economic progress. The business world has various fields, trading, industry, agriculture, manufacturing, etc. And they all have different characteristics. But the main problem most frequently faced by each company is about the business capital. Capital is needed for company recently founded or which has been running for years.

An institution engaged in the financial sector plays an important role in meeting the funding requirements for the company. This financial institution provides financing facilities for companies that need funds for working capital and capital investment. The definition of financial institution is "any company engaged in the financial sector, raise funds, distribute funds, or both".

In practice, financial institutions are classified into two major categories, namely bank financial institutions, and non-bank financial institutions.

Bank financial institutions, or the next we call with banks, is the financial institutions that raise funds, distribute, or both. Bank financial institutions consist of:

Central Bank

Is the bank with the main objective to achieve and maintain the stability of currency. To achieve these objectives, the central bank has the duty and authority in setting monetary policy, regulate and maintain the smooth foreign exchange system, and regulate and supervise banks.

Commercial Banks

Commercial banks are banks that are on duty to serve all banking services to the community.

Non-banks financial institutions include:

Capital markets

This is a market that is a meeting place for seekers of funds (the issuer) and the investors (investors). In the capital market is traded securities in the form of stocks and bonds, which are a long-term capital.

Money market

Similarly with capital markets, but the capital is for short-term capital.

Savings and loan institutions

Is an institution that collects funds from people who are members of the institution, then channeled back to the community and its members.

Pawnshop

Pawnshops are financial institutions that provide credit facilities with certain guarantees.

Insurance

This institution is a financial enterprises engaged in insurance business. Every customer subject to the insurance policy must be paid in accordance with the agreement, and the insurance company will bear the loss if the customer affected by the disaster / risk as it has been agreed.

Leasing companies

Is an institution that provides financing venture capital goods for its customers. For example, if a customer wants to buy goods but do not have enough funds, these companies will pay for the goods. Customer repaid to this company circuitry in accordance with the agreed contract.