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 source of finance: Long term financing can be raised from the following sources:

• Share capital or equity share
• Preference shares
• Debentures / Bonds of different types
• Loans from financial institutions
• Loan from state financial corporation.
• Loans from commercial banks

2. Medium-term source of finance: Medium term financing can be raised from the following sources:

• Preference shares
• Debentures / Bands
• Commercial banks
• Financial institutions
• Public deposits / fixed deposits for duration of three years.

3. Short -term source of finance: Short term financing can be raised from the following sources:

• Trade credit
• Commercial banks
• Fixed deposit for period of 1 years or less
• Advances received from customers
• Various short term provisions.