Following are long term finance source:
Also known as capital employed its the total long term finance injected in the business i.e. Long term debt + equity
Following are the long term sources of finance:Issue of Share Capital, Issue of Debentures or bonds, Raising of long term debt or Bank Loan, etc.For any more query, you can follow me at caravi1234.blogspot.in / FacebookCA. Ravi Chugh(FCA, Visiting faculty ICAI & Top Institutes of CA studies, IPCC-Accountancy)
There are many sources of capital, main sources are as follows:1 - short term sources2 - long term sources1 - short term sources like banks or financial institutions2 - long term sources like debt, public issuance etc.
Accounting and Finance
Following are possible sources: 1 - Issuance of additional shares 2 - Issuance of long term debt 3 - Bank Loan etc
sources of finance for expanding the a bussiness? short term medium term half term and long term
Following are two short term sources of finance: 1 - Creditors 2 - Banks
Also known as capital employed its the total long term finance injected in the business i.e. Long term debt + equity
Public limited companies can get long term financing from banks or finance companies. Either financial institution will assess the company's creditworthiness to determine if they would like to create a loan for them.
In a household- home mortgages and saving. In a Business- owners capital, retained earnings, state grants, debentures/ long term loans, sale and lease back
bank over draft that is short and long term, sub contracting, debentures, issuing share, mortgage, leasing,
Their main source of finance is through sale of shares however they usually take out long term bank loans as well. Dependant on the company of course :)
this is beacuse revenue expenditure is for a short period of time therefore it wouldnt make sense for it to get a long term loan neither would it make sense it capital expenditure which is long term uses a short term method of finance
short term finance long term finance foreign trad function
Short Term -Selling off inventory -Liquidating other assets (investments, capital, etc.) Long Term -Equity Invesment through shareholders -Debt, by borrowing money from banks
1. Most short-term sources of financing occur over a period of less than a year to one year, although some sources can last up to three years or longer. Long-term financing that a longer period of time about 3-30 years or more. like home mortgages are typically available in 15- and 30-year durations. 2. Because short-term financing is repaid over a shorter length of time, the interest rate or cost to borrow money is smaller. Long-term sources such as bank loans have a higher interest rate due to the amount of time it takes to finance the loan and repay the capital.
Following are the long term sources of finance:Issue of Share Capital, Issue of Debentures or bonds, Raising of long term debt or Bank Loan, etc.For any more query, you can follow me at caravi1234.blogspot.in / FacebookCA. Ravi Chugh(FCA, Visiting faculty ICAI & Top Institutes of CA studies, IPCC-Accountancy)