sourcesoffinancing-240307095529-f95dc665 (1) (1).pdf

lokeshkuruva08 5 views 10 slides Sep 29, 2024
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About This Presentation

offinancing-240307095529-f95dc665 (1) (1).pdf


Slide Content

DEPARTMENTOF
ELECTRONICSANDCOMMUNICATIONENIGINEERING
BUSINESSECONOMICSANDFINANCIALANALYSIS
Topic
Exploringthecaptialsources:Financingoptions
growingbussisiness.
PresentedBy
K.Lokesh22S11A04F4
N.Lalitha22S11A04F3
D.Madhav22S11A04F6
. B.madan22S11A04F5
G.Manikanta22S11A04F8

SOURCESOFFINANCE
SOURCESOFFINANCE–ThisisWHEREweget
financefrom

WhyDoBusinessesNeedFinance?
Businesses
needmoney
for…
Forstartingup Everydaybillpayments
Expansion
InternalGrowth
Takeoverbid
Replace
machinery/equipment

SourcesofFinance
SourcesofFinance
canbeeither:
Internal External

InternalSourcesofFinance
INTERNALSOURCESOFFINANCE–Financewhich
israisedinternally,itdoesnotincreasethedebts
ofthebusiness.
Examples:
Retainedprofit
Personalsavings
Saleofunwantedassets
Saleandleaseback

ExternalSourcesofFinance
EXTERNALSOURCESOFFINANCE–Financeprovided
bypeopleorinstitutionsoutsidethebusiness,creates
adebtthatwillrequirepayment.
Examples:
Loans
Overdraft
Shares
Debentures

TimePeriodsforFinance
Financeisgenerallyconsideredtobe
either:
MEDIUM
TERM
3–10YEARS
LONG
TERM
OVER10YEARS
SHORTTERM
UPTO3YEARS

Short-termFinance


Short-termFinanceisneededfortheday-to-day
runningofabusinessandisusuallyforaperiodof
upto3years
Inordertounderstandshort-termfinanceitis
necessarytounderstandtheconceptofCASH
FLOW

CashFlow
CASHFLOW–Abusinessneedssufficient
inflowsofcashtofinanceitsday-to-day
outgoings.
BUSINESS
INFLOWSrefersto
moneyreceivedbythe
business




EXAMPLES:
Salesrevenue
Capital
Loans
Grants
OUTFLOWSrefersto
moneypaidoutby
thebusiness



EXAMPLES:
Purchases
Rent&Rates
Wages&Salaries

THANK
YOU
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