In the present days there exists several sources of finance. Keeping in view the type of requirement the
finance sources are chosen. Find below various types of
finance source:
1) Long-term Sources of finance
The long-term sources of finances can be raised from the following sources:
- Share capital or Equity Share.
- Preference shares.
- Retained earnings.
- Debentures/Bonds of different types.
- Loans from financial institutions.
- Loan from State Financial Corporation.
- Loans from commercial banks.
- Venture capital funding.
- Asset securitisation.
- International
2) Medium-term Sources of finance
The medium-term sources of finance can be raised from the following sources.
- Preference shares.
- Debentures/Bonds.
- Public deposits/fixed deposits for duration of three years.
- Commercial banks.
- Financial institutions.
- State financial corporations.
- Lease financing / Hire Purchase financing.
- External commercial borrowings.
- Euro-issues.
- Foreign Currency bonds.
3) Short term Sources of finance
- Trade credit.
- Commercial banks.
- Fixed deposits for a period of 1 year or less.
- Advances received from customers.
- Various short-term provisions.