PPT - Sources of Business Finance Commerce Notes | EduRev

Business Studies (BST) Class 11

Commerce : PPT - Sources of Business Finance Commerce Notes | EduRev

 Page 2


BUSINESS FINANCE…?
? Business Finance is concerned with planning, raising, 
controlling and administering the funds used in the 
business
Business
Trade Commerce and 
Manufacture
Finance
Procurement, Allocation 
and control of Funds
Page 3


BUSINESS FINANCE…?
? Business Finance is concerned with planning, raising, 
controlling and administering the funds used in the 
business
Business
Trade Commerce and 
Manufacture
Finance
Procurement, Allocation 
and control of Funds
Financial Needs of Business
• Requirement: to run day-to-day business 
activities 
• Duration: Less than 1 Year
Short Term 
Financial Needs
• Requirement: investment in vehicles and 
other assets, deferred revenue expenditure 
• Duration: 1 – 5 years
Medium Term 
Financial Needs
• Requirement: finance fixed assets, like plant 
and machinery
• Duration: more than 5 years
Long Term 
Financial Needs
Page 4


BUSINESS FINANCE…?
? Business Finance is concerned with planning, raising, 
controlling and administering the funds used in the 
business
Business
Trade Commerce and 
Manufacture
Finance
Procurement, Allocation 
and control of Funds
Financial Needs of Business
• Requirement: to run day-to-day business 
activities 
• Duration: Less than 1 Year
Short Term 
Financial Needs
• Requirement: investment in vehicles and 
other assets, deferred revenue expenditure 
• Duration: 1 – 5 years
Medium Term 
Financial Needs
• Requirement: finance fixed assets, like plant 
and machinery
• Duration: more than 5 years
Long Term 
Financial Needs
Long Term 
Sources
Medium 
Term 
Sources
Short 
Term 
Sources
Sources of Business Finance
Page 5


BUSINESS FINANCE…?
? Business Finance is concerned with planning, raising, 
controlling and administering the funds used in the 
business
Business
Trade Commerce and 
Manufacture
Finance
Procurement, Allocation 
and control of Funds
Financial Needs of Business
• Requirement: to run day-to-day business 
activities 
• Duration: Less than 1 Year
Short Term 
Financial Needs
• Requirement: investment in vehicles and 
other assets, deferred revenue expenditure 
• Duration: 1 – 5 years
Medium Term 
Financial Needs
• Requirement: finance fixed assets, like plant 
and machinery
• Duration: more than 5 years
Long Term 
Financial Needs
Long Term 
Sources
Medium 
Term 
Sources
Short 
Term 
Sources
Sources of Business Finance Sources of Short Term Finances
Spontaneous 
Sources
Trade Credit
Accrued Expenses
Provisions
Short Term Banks 
Finance
Bank Overdrafts
Cash Credits
Bill Discounting
Letter of Credit
Advance against 
document of title 
to goods
Bank Guarantee 
for payments
Packing Credit
Bridge Finance
Factoring
Advances from 
Customers
Commercial Papers
Read More
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