Скачать или смотреть Sources of Finance for Business Organization

In today's discussion, we delve into the various sources of finance available for business organizations, both internal and external. Whether you're running a small firm or a large corporation, understanding how to raise capital is crucial for growth and sustainability.

Key Topics Covered:
Internal Sources of Finance for Small Firms:

Personal Savings: Sole traders and partnerships often convert personal savings into business capital.
Ploughed Back Profit: Reinvesting part of the profits made, also known as self-financing.
External Sources of Finance for Small Firms:

Borrowings from Friends and Relatives: A common practice to gather initial or additional capital.
Bank Loans: Provided the business has necessary collateral security.
Government Loans: Through financial institutions like the Nigerian Bank for Commerce and Industry (NBCI) and Industrial Development Bank (IDB).
Mergers: Small businesses merging to form larger units to increase capital.
Credit Purchases: Provided the business is credit-worthy.
Internal Sources of Finance for Large Firms:

Contributions by Founding Members: Often converted to founder's shares.
Retained Profits: Ploughing back accumulated profits for expansion.
Depreciation Funds: Utilizing money set aside for replacement of worn-out equipment before it’s due.
External Sources for Large Firms:

Selling Shares: A primary method of raising capital through ordinary or preference shares.
Credit Purchases: Provided the business is credit-worthy.
Bank Loans: Overdrafts or short-term loans from commercial banks.
Investment Trusts: Companies specializing in providing loans for industrial development.
Finance Corporations: Government-set units for providing loans for business development projects.
Keywords:
Sources of Finance, Business Finance, Internal Sources, External Sources, Small Firms, Large Firms, Personal Savings, Ploughed Back Profit, Bank Loans, Government Loans, Mergers, Credit Purchases, Retained Profits, Depreciation Funds, Selling Shares, Investment Trusts, Finance Corporations, Nigerian Bank for Commerce and Industry, Industrial Development Bank.

Tags:
#BusinessFinance, #SourcesOfFinance, #SmallFirms, #LargeFirms, #InternalFinance, #ExternalFinance, #PersonalSavings, #BankLoans, #GovernmentLoans, #SellingShares, #InvestmentTrusts, #FinanceCorporations,