Sources of business finance
- From personal savings of individuals
- Borrowing from relatives and friends
- Borrowing from financial institutions like banks and micro finance institutions
- Borrowing from non-bank financial intermediaries like the housing finance companies, insurance companies etc.
- Retained profits that is, profits which are not shared by the shareholders of the company. They are left in the company to expand the business. .
- Through the sale of shares to the public as the case of joint stock companies.
- Using debentures by companies in order to raise capital from the public.
- Loans from international financial lending institutions for example I.M.F and World Bank.
- Through gambling and national lotteries.
- Through donations and grants.
- Through the sale of government securities to the public for example treasury bills and bonds in case of public enterprises.
CATEGORIES Economics
TAGS Dr. Bbosa Science
