The difference between financing and investment is as follows:

1. Different concepts

Investment refers to the country or enterprise or individual signing an agreement with the other party for a specific purpose. The process of promoting social development, achieving mutual benefit, and transferring funds. It is also an economic behavior in which a specific economic entity invests a sufficient amount of funds or physical currency equivalents in a certain field within a certain period of time in order to obtain income or capital appreciation in the foreseeable future.

Financing is the act and process of raising funds for an enterprise. That is to say, the company makes scientific predictions and decisions based on its own production and operation status, capital ownership status, and the needs of the company's future business development. Use certain methods and channels to raise funds from the company's investors and creditors, and organize the supply of funds to ensure the company's normal production needs and financial management activities required for business management activities.

2. Different characteristics

Investment is another asset in exchange for the transfer of other assets. It is an asset held by the enterprise outside the production and operation process. It is a kind of Assets in the form of rights are assets with financial risks. The investment cycle is very long, usually 5-10 years. If it is not long, it is called speculation.

Financing is usually carried out directly or indirectly between holders of monetary funds and demanders. The flow of funds between suppliers and demanders is a two-way interactive process, including both the inflow and outflow of funds.

3. Different financing methods

Financing refers to the method of raising funds from outside the enterprise. Direct financing mainly refers to raising funds directly from fund holders, such as shareholders, investors, etc. way to obtain funds for the development and operation of the enterprise. Indirect financing mainly refers to the method of obtaining funds through financial institutions, borrowing long-term and short-term loans, issuing bonds, etc.

Investment is an economic behavior in which enterprises use their assets to purchase securities or inject funds into other units with physical objects, intangible assets, etc. and obtain economic benefits in accordance with relevant national fiscal and financial policies; financing is just the opposite. , is an economic behavior in which enterprises seek development and expand their business scale by issuing securities or absorbing funds from other units to expand funds.