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:
- 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
- Medium-term sources of finance: Medium term financing can be raised from the following sources:
- Debentures/bonds
- Financial institutions
- State financial corporations
- Euro issues.
- 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.