Sources of Business Finance, from where the Business can get its money. Internal As well External. Like it if it proves to be helpful.

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.)