SOURCES OF FINANCE

Sources of finance can be divided into two

1. Short term sources
   They are refundable after a long period of time i.e. after 3 years They include commercial paper, bank overdraft, loans, promissory notes, treasury bills, bills of exchange letters of credit and hire purchase
2. Long term sources
   These funds are refundable after a short period of time i.e. a period of 12 years They include equity, rights issue, bonus issue, bonds or debentures, notes payables, lease or buy decision, venture capital and syndicate loans