1. Meeting Financial Requirements :

The industrialists and traders often face the shortage of capital for buying materials and holding stock. This problem is solved by the commercial banks and other financial institutions which meet the financial requirements of trade and industry. Commerical banks also offer loans to consumers for the purchase of durables such as scooter, refrigerator, T V, etc. They facilitate remittance of funds from one place to another and also settlement of credit transactions.

2. Coverage of Business Risks : Business firms are exposed to several risk such as theft, fire, flood, etc. Such risks are covered by insurance companies through various policies issued against payment of required insurance premium. Insurance companies cover the risks of goods in storage and also in the process of transit of goods to traders and consumers. Business premises, stock, furniture, plant and machinery can be insured against fire, theft, and other risks.