There are several sources of finance for businesses, including equity shares, preference shares, debentures, loans from banks and financial institutions, and retained earnings. Equity shares are sold to raise capital for the business and preference shares offer a fixed dividend. Debentures are debt instruments that pay a fixed rate of interest. Banks provide short and long-term loans for working capital and other needs. Financial institutions also provide loans after reviewing a business's model and management abilities. Maintaining various sources of finance is important for business operations and growth.