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Sources of fund.
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Sources of finance basically based on the capital required to the company. Depending on the date of maturity, sources of finance can be clubbed into the following:

  1. Long-term sources of finance: Long term financing can be raised from the following sources:
    • Share capital or equity share
    • Preference shares
    • Retained earnings
    • Asset securitization
  2. Medium-term sources of finance: Medium term financing can be raised from the following sources:
    • Debentures/bonds
    • Financial institutions
    • State financial corporations
    • Euro issues.
  3. Short-term sources of finance: Short term financing can be raised from the following sources:
    • Trade credit
    • Commercial banks
    • Advances received from customers
    • Various short term provisions.
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