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 […]

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 […]

10 Main Sources of Short-Term Fund

This article throws light upon the ten main sources of short-term fund. The sources are: 1. Indigenous Bankers 2. Trade Credit 3. Installment Credit 4. Advances 5. Factoring 6. Accrued Expenses 7. Deferred Incomes 8. Commercial Paper 9. Commercial Banks 10. Public Deposits. Short-Term Funds: Source # 1. Indigenous Bankers: Private money-leaders and other country […]

Ploughing Back of Profits: Advantages and Disadvantages

After reading this article you will learn about the Advantages and Disadvantages of Ploughing Back of Profits. Advantages of Ploughing to the Company: Ploughing back of profits provides a number of advantages to the company, shareholders and the society at large. These merits are discussed as follows: (A) Advantages to the Company: 1. A cushion […]

Sources of Internal Financing for Existing Concerns

This article throws light upon the top two sources of internal financing for existing concerns. The sources are: 1. Ploughing Back of Profits 2. Depreciation as a Source of Funds. Internal Financing for Existing Concerns: Source # 1. Ploughing Back of Profits: The ‘Ploughing Back of Profits’ is a technique of financial management under which […]

Top 2 Categories for Evaluation of Public Deposits

This article throws light upon the top two categories for evaluation of public deposits. The categories are: 1. As a Source of Corporate Finance 2. Investor’s Point of View. Category # 1. As a Source of Corporate Finance: Many companies have accepted unsecured deposits from the public in the recent past, in India, mainly to […]

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 […]

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