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 on debt. For example, a [...]
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 earning a high rate of [...]
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. In under-developed countries, the need [...]