Archive | Finance Sources

Top 4 Sources of Finance (With Formula and Calculations)

This article throws light upon the top four sources of finance. The sources are: 1. Cost of Debt 2. Cost of Preference Capital 3. Cost of Equity Share Capital 4. Cost of Retained Earnings. Finance: Source # 1. Cost of Debt: i. Cost Perpetual/Irredeemable Debt: The cost of debt is the rate of interest payable […]

Categories for Classification of Corporate Securities (With Diagram)

This article throws light upon the top two categories for classification of corporate securities. The categories are: 1. Ownership Securities 2. Creditor-ship Securities. Category # 1. Ownership Securities: The term ‘ownership securities,’ also known as ‘capital stock’ represents shares. Shares are the most universal form of raising long-term funds from the market. Every company, except […]

Top 5 Forms of Financial Lease| Finance Sources

This article throws light upon the top five forms of financial lease. The forms are: 1. Sale and Leaseback 2. Direct Leasing 3. Leveraged Lease 4. Straight Lease and Modified Lease 5. Primary and Secondary Lease. Financial Lease: Form # 1. Sale and Leaseback: A sale and leaseback arrangement involves the sale of an asset […]

Top 2 Sources of Term Loan

This article throws light upon the top two sources of term loan. The sources are: 1. Specialised Financial Institutions 2. Commercial Banks. Term Loans: Source # 1. Specialised Financial Institutions: The need for establishing financial institutions was felt in many countries immediately after the Second World War in order to re-establish their war shattered economies. […]

Government Regulation on Public Deposits

This article throws light upon the top eleven features of Government Regulation on Public Deposits. The features are: 1. Ceiling on Deposits 2. Maturity of Deposits 3. Form and Particulars of Advertisement 4. Form of Application for Deposits 5. Furnishing of Receipts to Depositors 6. Register of Deposits 7. Interest on Deposits 8. Ceiling on […]

Factoring: Mechanism, Types and Benefits

After reading this article you will learn about Factoring:- 1. Mechanism of Factoring 2. Types of Factoring 3. Benefits. Mechanism of Factoring: The mechanism of factoring is summed tip as below: (i) An agreement is entered into between the selling firm and the factor firm. The agreement provides the basis and the scope of the […]

6 Main Sources of Finance

This article throws light upon the six main sources of finance. The sources are: 1. Venture Capital 2. Seed Capital 3. Bridge Finance 4. Lease Financing 5. Hire Purchase Finance 6. Euro Issues. Finance: Source # 1. Venture Capital: The term ‘venture capital’ represents financial investment in a highly risky project with the objective of […]

Top 8 Financial Institutions of India

This article throws light upon the top eight financial institutions at national level. The financial institutions are: 1. Industrial Finance Corporation of India (IFCI) 2. Industrial Credit and Investment Corporation of India (ICICI) 3. State Financial Corporations (SFCs) 4. State Industrial Development Corporations (SIDC’S) 5. Industrial Development Bank of India (IDBI) 6. Industrial Investment Bank […]

Advantages and Disadvantages of Leasing

After reading this article you will learn about the Advantages and Disadvantages of Leasing:- 1. Advantages of Leasing to the Lessee 2. Disadvantages of Leasing for the Lessee 3. Advantages of Leasing to the Lessor 4. Disadvantages for the Lessor. Advantages of Leasing to the Lessee: (i) Avoidance of Initial Cash Outlay: Leasing enables a […]

Lease Types: Top 2 Types of Lease | Finance Sources

This article throws light upon the top two types of lease. The types are: 1. Operating Lease 2. Financial Lease. Type # 1. Operating Lease: An operating lease is usually characterised by the following features: (i) It is a short-term lease on a period to period basis. The lease period in such a contract is […]

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