sources of finance

sources of finance

the provision of finance to a company to cover its short-term WORKING CAPITAL requirements and longer-term FIXED ASSETS and investments. In financing their business operations, companies typically resort to a mix of internally generated funds and external capital. The company's own RETAINED PROFIT is the primary source of internal funds. Short-term external finance is obtained largely in the form of TRADE CREDITS extended by suppliers, and BANK LOANS and OVERDRAFTS from the commercial banks. Long-term external finance takes the form principally of SHARE CAPITAL (ordinary and preference shares) subscribed by private investors, the institutional investors, merchant banks and venture capital specialists; LOAN CAPITAL (loan stock and debentures) SUBSCRIBED by the above plus the commercial banks; and miscellaneous grants and loans made available by governments (see, for example, INDUSTRIAL POLICY, REGIONAL POLICY). See also FACTORING, LEASING, LETTER OF CREDIT, FORFAITING, LOAN GUARANTEE SCHEMES, BUSINESS ENTERPRISE INVESTMENT SCHEME, ENTERPRISE GRANT SCHEME.
References in periodicals archive ?
Sources of Finance Ministry expressed hope that due to this installment country's foreign reserves will be increased.
One of the avenues being pushed hard by the government and by the big banks through their Business Finance Taskforce is increasing the supply of alternative sources of finance outside of traditional bank products like overdrafts and term loans.
That's why in two weeks time at our National Manufacturing Conference we will be looking at alternative sources of finance where those attending will be able to press a panel of experts on how they find out about sources of finance outside of traditional bank lending as well as putting out some challenges as to where the gaps remain.
But the language on page 10, paragraph 44, leaves no doubt that international taxation is still very much on the table: "We recognize the value of exploring innovative sources of finance provided that those sources do not unduly burden developing countries.
The objective was "to examine techniques for obtaining and analysing information related to all sources of finance in the health field and identifying major categories of the health expenditure".