What are the sources of fund in finance and accounting?

Source of finance can be simply explained as follows −

• Based on time

LONG TERM	MEDIUM TERM	SHORT TERM
BASED ON TIME
Equity shares	Preference shares	Trade credit
Preference shares	Debenture/Bonds	WC loans
Internal accruals	financial institutes government commercial banks	Fixed deposits (period of 1 year)
Debentures/bonds		Advances from customers
Term loans		Creditors
Venture funding	lease finance	Payables
Asset securitization	Hire purchase finance	Factoring services
International finance		Bill discounting

• Based on ownership and control

Owned	Borrowed
Based on ownership and control
Equity capital	Loans from Financial institutions Commercial loans
Preference capital
Retained earnings
Convertible debentures	Debentures
Venture fund/ private equity

• Based on source generation

Internal	External
Based on source generation
Equity capital	Retained profits
Preference capital	Reduction in working capital
Retained earnings	Sale of assets
Convertible debentures
Venture fund/private equity