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1. Finance Terms And Related Sources
Organization divided into three categories to define the
finance terms which depend upon the nature of business
 Short Term Finance
 Medium Term Finance
 Long Term Finance
The organization will collect money by all these factors like
cash, credit, discounting of bills, shares etc. Short term
finance sources are below:
 Advances of Customers: This source will act as
other different factors like elasticity of demand, types of
goods etc.
 Trade Credit: Trade credit is a mixture whereby
suppliers of components, raw materials, finished

2. goods, stores and spare parts, permit the customers to
pay their luminous within the given praise period.
 Discounting Bill of Exchange: Discounting bills
refers to an act of advertising such bills to receive
amounts for it before maturity.
 Cash Credit: Cash credit is a contract where bank
permits the borrower to take out money within a
particular limit from time to time.
 Bank Overdraft: It is also a contract, where bank
allows the client to overdraw money from its existing
account within decided limit.
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