ASSIGNMENT

OF PME

BY: GURVINDER KAUR

MBA
 MEANING OF FINANCING
 To meet the estimated costs of the
projects,finance is required. In every
project,finance is arranged from two sources-
internal and external.Internal sources refer to
the owner own money.However, a major
portion of money is arranged from the external
sources.
 SOURCES OF LONG TERM FINACE

Long Term is needed to acquire which are of

fixed nature. The long term sources of
finance,generally include the following:
1 SHARE CAPITAL:Share capital is two types-
(a)Equity Share Capital
(b)Preference Share
2 DEBENTURES
3 TERM LOANS
4 DEFERRED CREDIT
 COND………
5 GOVERNMENT INCENTIVES:Government
also provide support and incentives to certan
type of enterpreneurs for setting up projects
in certan locations. These incentives can be in
the form of:
(a)Seed Capital Assistance
(b)Capital Subsidy
(c) Tax Exemptions
6 UNSECURED LOANS AND DEPOSITS
 WORKING CAPITAL
It means is the amount of money reqired by
an enterprise for carrying out its day to day
operations.The working capital is two types:
(a) Permanent working capital

(b) Variable working capital

 SOURCES OF SHORT TERM
FINANCE
1 LOANS FROM BANKS
2 PUBLIC DEPOSITS
3 TRADE CREDIT
4 PLEDGING AND FACTORING
5 BANK OVERDRAFT
6 CASH CREDIT
7 BILLs DISCOUNTING
8 ADVANCES FROM CUSTOMERS
9 ACCRUALS