Sources of Business Finance

Sources of business finance can be studied under the following heads:(1) Short Term Finance:Short-term finance is needed to fulfill the current needs of business. The current needs may include payment of taxes, salaries or wages, repair expenses, payment to creditor etc. The need for short term finance arises because sales revenues and purchase payments are not perfectly same at all the time. Sometimes sales can be low as compared to purchases. Further sales may be on credit while purchases are on cash. So short term finance is needed to match these disequilibrium.Sources of short term finance are as follows:(i) Bank Overdraft: Bank overdraft is very widely used source of business finance. Under this client can draw certain sum of money over and above his original account balance. Thus it is easier for the businessman to meet short term unexpected expenses.(ii) Bill Discounting: Bills of exchange can be discounted at the banks. This provides cash to the holder of the bill which can be used to finance immediate needs.(iii) Advances from Customers: Advances are primarily demanded and received for the confirmation of orders However, these are also used as source of financing the operations necessary to execute the job order.(iv) Installment Purchases: Purchasing on installment gives more time to make payments. The deferred payments are used as a source of financing small expenses which are to be paid immediately.(v) Bill of Lading: Bill of lading and other export and import documents are used as a guarantee to take loan from banks and that loan amount can be used as finance for a short time period.(vi) Financial Institutions: Different financial institutions also help businessmen to get out of financial difficulties by providing short-term loans. Certain co-operative societies can arrange short term financial assistance for businessmen.(vii) Trade Credit: It is the usual practice of the businessmen to buy raw material, store and spares on credit. Such transactions result in increasing accounts payable of the business which are to be paid after a certain time period. Goods are sold on cash and payment is made after 30, 60, or 90 days. This allows some freedom to businessmen in meeting financial difficulties.(2) Medium Term Finance:This finance is required to meet the medium term (1-5 years) requirements of the business. Such finances are basically required for the balancing, modernization and replacement of machinery and plant. These are also needed for re-engineering of the organization. They aid the management in completing medium term capital projects within planned time. Following are the sources of medium term finance:(i) Commercial Banks: Commercial banks are the major source of medium term finance. They provide loans for different time-period against appropriate securities. At the termination of terms the loan can be re-negotiated, if required.(ii) Hire Purchase: Hire purchase means buying on installments. It allows the business house to have the required goods with payments to be made in future in agreed installment. Needless to say that some interest is always charged on outstanding amount.(iii) Financial Institutions: Several financial institutions such as SME Bank, Industrial Development Bank, etc., also provide medium and long-term finances. Besides providing finance they also provide technical and managerial assistance on different matters.(iv) Debentures and TFCs: Debentures and TFCs (Terms Finance Certificates) are also used as a source of medium term finances. Debentures is an acknowledgement of loan from the company. It can be of any duration as agreed among the parties. The debenture holder enjoys return at a fixed rate of interest. Under Islamic mode of financing debentures has been replaced by TFCs.(v) Insurance Companies: Insurance companies have a large pool of funds contributed by their policy holders. Insurance companies grant loans and make investments out of this pool. Such loans are the source of medium term financing for various businesses.(3) Long Term Finance:Long term finances are those that are required on permanent basis or for more than five years tenure. They are basically desired to meet structural changes in business or for heavy modernization expenses. These are also needed to initiate a new business plan or for a long term developmental projects. Following are its sources:(i) Equity Shares: This method is most widely used all over the world to raise long term finance. Equity shares are subscribed by public to generate the capital base of a large scale business. The equity share holders shares the profit and loss of the business. This method is safe and secured, in a sense that amount once received is only paid back at the time of wounding up of the company.(ii) Retained Earnings: Retained earnings are the reserves which are generated from the excess profits. In times of need they can be used to finance the business project. This is also called ploughing back of profits.(iii) Leasing: Leasing is also a source of long term finance. With the help of leasing, new equipment can be acquired without any heavy outflow of cash.(iv) Financial Institutions: Different financial institutions such as former PICIC also provide long term loans to business houses.(v) Debentures: Debentures and Participation Term Certificates are also used as a source of long term financing.Conclusion:These are various sources of finance. In fact there is no hard and fast rule to differentiate among short and medium term sources or medium and long term sources. A source for example commercial bank can provide both a short term or a long term loan according to the needs of client. However, all these sources are frequently used in the modern business world for raising finances.

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Varities in Online Casino Games

What is Online Casino Games?Online casinos, also known as virtual casino or internet casino are an online version of traditional casinos. Casinos you go to, to play black jack or cleanly slot machines. Online casinos permit gamblers/players to play and gamble on casino games through the Internet.These types of online gambling casinos generally offer unusual and payback proportions that are comparable to land-based casinos. Some online casinos declare higher payback percentages for slot machine games, and some publish expense percentage audits on their websites. Assuming that the casino royal is using an appropriately programmed random number generator, table games like blackjack have an established house frame. The payment percentage for these games is established by the rules of the game. Reliability and trust issues are usual and often questioned in casino net. Many online casinos rent or acquire their software from well-known companies like Wager Works, Microgaming, Real time Gaming, Play tech and Cryptology in an attempt to “piggyback” their reputation on the software manufacturer’s integrity. These software companies either utilize or assert to use random number generators for online casino gambling to ensure that the numbers, cards or dice emerge randomly.In free casino games, whatever you like betting, you will be able to make your choice between different sites and online casinos without downloading on your computer any software. The games are represented in your browser plug-ins such as Macro media Flash, Macro media Shock wave, or Java which will permit your computer to display the sounds, images and games in virtual casino.The online gambling player will find on online casino a great range of games such as Baccarat, Blackjack, Craps, Roulette, Slot Machines or Video Poker. If you are a devoted Bingo online player, many sites such as will give you the thrill you are looking for some of them offering to succeed free vacations or tours by casino net, if you make a deposit before a certain date.Online casinos also propose to new members/players signup bonuses when they create their first deposits in casino royal. It usually equals a percentage of the player’s deposit with a dollar maximum, and most of all online casinos require a minimum dollar amount.
With online casino, you can have fun all the games you want, from Baccarat to Poker.BaccaratBaccarat game is played with cards; it is an online casino gambling game that was first introduced into France casino royal from Italy during the sovereignty of Charles VIII of France. There are three alternatives of the game: baccarat chem in de fer (railway), baccarat banque (or a deux tableaux), and punto banco (or North American baccarat). Baccarat is a simple game with only three results, player, banker and tie. These are just options on which the gambler can bet.BlackjackBlackjack is the most well-liked casino card game in the casino net world. It is as famous as twenty-one (vingt-et-un) or Pontoon, originated from French casinos in the 1700s. The recognition of blackjack is mainly known to the card counting (keeping track of which cards have been played since the last shuffle). Blackjack hands are achieved by their point total. The hand with the highest total wins as long as it doesn’t go beyond 21 (vingt-et-un).RouletteRoulette is a casino and gambling game and comes from a French name sense “small wheel” which is accurately what Roulette is. It was invented in the 17th century by a gentleman name Blaise Pascal. To make it more pleasing to gamblers, two other Frenchmen Fran├žois and Louis Blanc added the “0″ to the roulette in classify to boost the odds. Later on in the 1800s, roulette was brought into the United States where a second “0″ was added “00″ to increase the odds even more. A player can gamble on numbers, combination, ranges, odds/evens, and colors in virtual casino. The croupier turns the wheel which has 37 or 38 singly numbered sections in which the little ball must land for free casino games. The main sections are from 1 to 36 and every other sections is red and black, with number one being red. There is also a green compartment numbered 0. In most roulette wheels in the United States but not in Europe, there is a second 0 compartment marked 00, also colored green. If a player bets on a single number and wins, the costs is 35 to 1. The gamble itself is revisited, so in total it is multiplied by 36. You can play the roulette on online casino Royal and will have the accurate same results as if you were in a real Vegas casino.Slot MachinesSlot machines are most likely the most popular form of online casino net and you will find so many of them on each online casino site you’re going to. Online casino slot machines are coin controlled with three or more reels, which spins when the person triggers the handle on the side of the machine. Inside the slot machine is a currency detector that validates the money inserted by the player. The machine will only pay off when the symbols will match, for example 3 hats or 3 dollar signs. Sometimes, the player can win with only two parallel symbols. It is the same with online virtual casino slot machine the player will pay with a credit card a definite amount of money and click on the icon to play. Due to modern computer technology, there are now many variations of the slot machine concept and it represents about 70% of the average casino’s income.There are so many online casino net websites now offered, that the player/gambler will have no problem choosing what he wants to play. You can surf on different online casino websites to do online gambling and see which one you like finest and suit your needs, no matter what you will find your gambling pleasure.