Sources of business finance
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Sources of Business Finance, from where the Business can get its money. Internal As well External. Like it if it proves to be helpful.
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Sources of business finance
- 2. BUSINESS FINANCE…? Business Finance is concerned with planning, raising, controlling and administering the funds used in the business Business Trade Commerce and Manufacture Finance Procurement, Allocation and control of Funds
- 3. Financial Needs of Business • Requirement: to run day-to-day business activities • Duration: Less than 1 Year Short Term Financial Needs • Requirement: investment in vehicles and other assets, deferred revenue expenditure • Duration: 1 – 5 years Medium Term Financial Needs • Requirement: finance fixed assets, like plant and machinery • Duration: more than 5 years Long Term Financial Needs
- 4. Long Term Sources Medium Term Sources Short Term Sources Sources of Business Finance
- 5. Sources of Short Term Finances Spontaneous Sources Trade Credit Accrued Expenses Provisions ShortTermBanks Finance Bank Overdrafts Cash Credits Bill Discounting Letter of Credit Advance against document of title to goods Bank Guarantee for payments Packing Credit Bridge Finance Factoring Advancesfrom Customers CommercialPapers
- 6. Sources of Medium Term Finances
- 7. Sources of Long Term Finances Equity Share Capital Preference Share Capital Debentures or Bonds Retained Earnings Foreign Currency Loans Term Loans Seed Capital Assistance Venture Capital Capital Incentives International Financing (like Euro-issues, FDI, etc.)