How to apply mudra loan

  1. Home
  2. >
  3. Business Loan
  4. >
  5. Sources of Business Finance

Sources of Business Finance

Quick apply

Just 60 seconds to apply

Please enter your first and last name
Enter 10-digit mobile number
Please enter your Birth date
Please enter valid PAN card number
Please enter your pin code
Enter personal email address

I consent to the T&C and authorize Bajaj Finance Limited, its representatives/business partners/affiliates to use my details for promotional communication/fulfilment of services availed.

Thank you

Business Finance Meaning and Definition

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.

Different sources of business finance

  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.

  1. 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.

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

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

There are various other sources of business finance like peer-to-peer lending, crowdfunding, etc. Avail such external financing opportunities when in need and do away with funding worries for your business.


What do you mean by business finance?

Business finance refers to the external financial assistance a business may utilise to meet its monetary needs. The funds so availed can be used as capital investment to improve infrastructure, increase working capital, expand business operations, etc.

The funding needs of a business can be classified under the following categories –

  • For fixed capital such as land & building, plant & machinery, etc.
  • As working capital like raw material purchase, payment of wage, salaries, rent, etc.
  • For upgrades to the latest technology and software.
  • To diversify product range and upscale operations.

Enterprises can raise business finance from various sources to fulfil their funding needs. They can include loans from financial institutions, invoice financing, raising capital by offering market shares, crowdfunding, peer-to-peer lending, etc.

Loans and advances from financial institutions are available against minimum eligibility, making them among the more popular sources of business finance.

What are the types of finance in business?

Finance in business can be broadly categorised under two types –

- Debt finance
Better known as borrowed capital, debt finance is either a short term or a long term funding to be repaid along with interest to the lender.

- Equity finance
It is a type of finance raised in exchange for partial ownership of the business. Equity finance can either be capital introduced by the owner or by the investor/s. In case of the latter, the investors become shareholders of the company.

People Also Considered

Machinery Loan

Machinery Loan

Funds to upgrade machinery
Up to Rs. 20 lakh | Pay only interest as EMI

Flexi Business Loan

Flexi Loan Conversion

Convert your existing loan | Pay lower EMIs by up to 56%

Working Capital Loan People Considered Image

Working Capital

Manage operational expenses
Up to Rs. 20 lakh | Flexible tenor options

Business Loan for Women People Considered Image

Business Loan for Women

Avail customized loans
Up to Rs. 20 lakh | Minimal documentation