What is the source of finance?

The source of finance refers to where the money comes from to fund a business or project. This can include sources such as personal savings, bank loans, venture capital, angel investors, crowdfunding, or government grants.

Internal Sources:

- Retained earnings
- Depreciation
- Sale of assets
- Equity financing

External Sources:

- Debt Financing:
- Loans (secured and unsecured)
- Bonds
- Commercial paper
- Equity Financing:
- Issuance of shares (common and preferred stock)
- Private equity investments
- Venture capital
- Hybrid Financing:
- Preferred stock (convertible or participating)
- Mezzanine debt
- Other Sources:
- Government grants and subsidies
- Crowdfunding
- Trade credit
- Invoice financing
- Asset-based lending