What are different sources of finance?
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Answers
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⎇ Owners Fund
⎇ Borrow Fund
Owners fund is also called as Owners Capital or owned capital. It consists of the funds contributed by the owners of business as well as profits reinvested in business. A company cans raise owner’s funds in the following ways:-
→Issue of equity shares
→Ploughed back profits
The second source of funding to a business is the borrowed fund. Borrowed fund consists of the amount raised by way of loans or credit. It is also known as borrowed capital. The borrowed fund is procured from the following sources;-
Debentures
Bank Loans
Loans from specialized financial institutions
Other long term financial institutions
Types of Business Finance:-
→Short Term Finance
→Medium Term Finance
→Long Term Finance
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