Sources and Instruments of Business Finance
Long term Sources of Finance
The Sources of long term funds available to companions are:
1. Ordinary shares and reserves (Equity).
2. Preference Shares.
3. Debenture and other types of loan stock.
4. Convertible loan Stock
5. Warrants.
6. Share Options.
7. Leasing.
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businesses utilize a combination of equity financing, debt financing, internal sources, alternative financing, government programs, and trade credit to meet their financing needs and support their growth and operations. The choice of financing sources depends on factors such as the organization's financial position, capital structure, risk tolerance, growth objectives, and market conditions.
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