Question

Explain the various sources of finances for the purpose of raising finance by event entrepreneurs.

23 Sep 2020
Answer :
Word Count : 282

The sources of short-term finance could be:

1.Bank borrowing for working capital ~

2.Sundry creditors

3.Deposits/borrowing from friends, relatives and others

4.Deposit received from customers.

The sources of long-term finance include:

I) Owner's capital, that is, equity;

II) Deposits/Loans given by owners (partners/directors) to the firm;

III) Term loans from financial institutions;

IV) Hire purchase/leasing facility from National Small Industries Corporation or similar organisations.

V) Credit facilities from commercial banks.

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