Sources of Business Finance

Different sources of business finance

Business finance refers to external monetary assistance availed whenever a business runs short of capital. The funds enable individuals to maintain daily operations, expand market reach, procure raw materials, invest in infrastructure, and many similar necessities.

Some of the sources of business finance include:

1. Financial Institutions
   Financial institutions like Bajaj Finserv provide financing to companies in the form of Business Loans or business credit cards. Businesses applying for such loans must be at least 3 years old and the applicant must hold a credit score of 750 or more.

2. Angel Investors and Venture Capitalists
   Equity capital is another form of business financing. Two of the most common sources of such capital are angel investors and venture capitalists.

3. Accounts Receivable or Invoice Financing
   Businesses can receive financing by pledging their accounts receivable or invoices as collateral.

4. Inventory Financing
   Inventory financing is similar to the above where a company pledges its inventory as collateral.