单词 | sources of finance |
释义 | sources of financesources of financethe provision of finance to a company to cover its short-term WORKING CAPITAL requirements and longer-term FIXED ASSETS and investments. In financing their business operations, companies typically resort to a mix of internally generated funds and external capital. The company's own RETAINED PROFIT is the primary source of internal funds. Short-term external finance is obtained largely in the form of TRADE CREDITS extended by suppliers, and BANK LOANS and OVERDRAFTS from the commercial banks. Long-term external finance takes the form principally of SHARE CAPITAL (ordinary and preference shares) subscribed by private investors, the institutional investors, merchant banks and venture capital specialists; LOAN CAPITAL (loan stock and debentures) SUBSCRIBED by the above plus the commercial banks; and miscellaneous grants and loans made available by governments (see, for example, INDUSTRIAL POLICY, REGIONAL POLICY). See also FACTORING, LEASING, LETTER OF CREDIT, FORFAITING, LOAN GUARANTEE SCHEMES, BUSINESS ENTERPRISE INVESTMENT SCHEME, ENTERPRISE GRANT SCHEME. |
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