SOURCES OF WORKING CAPITAL FINANCE

1. Various Sources of securing Working Capital Finance: Sources of Finance

______________________________________________________________________ Long Term Sources (Regular Working Capital) _______________________ Internal Sources External Sources Other Sources Short Term Sources (Seasonal Working Capital) ____________________ Internal Sources External Sources

- Retained Earnings - Issue of Equity Shares (Profit & Loss A/c) - Issue of Preference Shares - Sale of FAs - Issue of Debentures - Loans from FIs - Security from Employees - Security from Customers

- Accrual Accounts - Trade Credit (Provision for Tax) (Open Acct/Acceptance) - Depreciation Funds - Public Deposit - Customer Advances - Credit Papers - Indigenous Bankers (Private Individuals) - Govt. Assistance - Commercial Papers - Bank Credit - Zero Coupon Bonds (Loans/OD/CC/BD) - Factoring - Business Finance Cos (Recourse & Non Recourse)