Syntax error What are the sources of fund in finance and accounting?

What are the sources of fund in finance and accounting?

Source of finance can be simply explained as follows −

  • Based on time
LONG TERM MEDIUM TERM SHORT TERM

BASED ON TIME



Equity shares Preference shares Trade credit
Preference shares Debenture/Bonds WC loans
Internal accruals
  • financial institutes
  • government
  • commercial banks
 Fixed deposits (period of 1 year)
Debentures/bonds Advances from customers
Term loans Creditors
Venture funding lease finance Payables
Asset securitization Hire purchase finance Factoring services
International finance
Bill discounting
  • Based on ownership and control
Owned Borrowed

Based on ownership and control

Equity capital Loans from
Financial institutions
Commercial loans
Preference capital
Retained earnings
Convertible debentures Debentures
Venture fund/ private equity
  • Based on source generation
Internal External
Based on source generation
Equity capital Retained profits
Preference capital Reduction in working capital
Retained earnings Sale of assets
Convertible debentures
Venture fund/private equity
Updated on: 2020-08-12T11:18:05+05:30

287 Views

Kickstart Your Career

Get certified by completing the course

Get Started
Advertisements