Question: Sources of funds required for a project.
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Subject : Construction Management

Marks: 04 M

Difficulty : Medium

mumbai university • 132 views
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modified 8 weeks ago  • written 12 weeks ago by gravatar for Ankit Pandey Ankit Pandey70
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Sources of finance basically based on the capital required to the company. Depending on the date of maturity,sources of finance can be clubbed into the following.

1. Long-term source of finance: Long term financing can be raised from the following sources:

  • Share capital or equity share
  • Preference shares
  • Debentures / Bonds of different types
  • Loans from financial institutions
  • Loan from state financial corporation.
  • Loans from commercial banks

2. Medium-term source of finance: Medium term financing can be raised from the following sources:

  • Preference shares
  • Debentures / Bands
  • Commercial banks
  • Financial institutions
  • Public deposits / fixed deposits for duration of three years.

3. Short -term source of finance: Short term financing can be raised from the following sources:

  • Trade credit
  • Commercial banks
  • Fixed deposit for period of 1 years or less
  • Advances received from customers
  • Various short term provisions.
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modified 8 weeks ago  • written 8 weeks ago by gravatar for Ankit Pandey Ankit Pandey70
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