Sunday, October 19, 2014

What are the sources of Finance.

Generally there are two sources of finance in a business, Which are - Internal and External.

Internal Sources:-
i) Owner's Capital.
ii) Retained Earnings.
iii) Reserve and Surplus.
iv) Accrued expenses.
v) Provident Fund.

External Sources:- 
i) Loans From Commercial Banks
ii) Loans from insurance Companies.
iii) Loans from Finance Companies.
iv) Leasing Companies.
v) Bond / Debenture Issue.

 

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