Different Sources of Finance for Businesses/ Startups

sources of finance

Finance is the most crucial aspect of any business, and it becomes difficult to survive when the sources get drained out for them. Have you ever wondered how companies like Apple, Google, Wipro, TCS, L&T, and other major companies are functioning for so long despite having highs and lows in their business tenure?

Whether you are just starting up or have been in business for several years, managing funds for a business or start up is the most significant part of entrepreneurial skill. Businesses always require funds to operate, expand or taking ahead to the next level.

In this article, We will provide you detailed information on different sources of finance for a business.

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Difference between ETF and Index Fund – 5 Crucial Perspectives

difference between etf and index fund

Whether you are just a beginner or an expert in stock market investing, you must hear the terms ETFs (Exchange-traded funds) and index funds, one day or the other. Both are great to start with, but one should critically examine what exactly they are, how do they work? before get in.

Though they are more similar to each other, at the same time, there are few differences as well. Hence it is advised to analyze their similarity, differences, pros, and cons before investing in these investment vehicles.

This article intends to elaborate on the similarity and difference between ETF and index fund based on different critical perspectives which are significant to get the desired outcomes in the future.

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Discounting Bill of Exchange | Meaning-Cum-Process

Discounting of Bill of Exchange

Goods or services are bought generally on credit whether it is traded locally or internationally. Therefore, maintaining a positive cash flow becomes a major challenge for suppliers.

Potential Buyers always demand trade credit from sellers while purchasing goods or services. Hence, discounting bill of exchange facilities the suppliers in the management of short-term capital for their business.

This article elaborates what exactly discounting of bill or bill discounting is and how does it work?

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Trade Credit | Meaning, Advantages & Importance in Business

trade credit

Businesses without credit are hard to imagine. In today’s scenario, working capital and cash flow are some of the most significant aspects of business or trading (B2B).

The customers, especially, in B2B (Business 2 Business) want to purchase goods/ services on a credit basis without paying cash upfront.

Therefore, role of Trade Credit comes into picture and plays a vital role in B2B transactions.

This article intends to put forward what exactly is Trade Credit, and how important it is during B2B sales between two parties/ companies.

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Personal Line of Credit vs Personal Loan | 5 Hidden Aspects Did You Know?

personal line of credit vs personal loan

If you’re like most people, you’ll need or want to borrow money at some point in your life. Perhaps you want to fund a large home renovation project or need funds to pay your taxes or to cover unforeseen medical expenses. You may also want to consolidate debt by taking out a loan at a lower interest rate.

A personal loan or a line of credit, depending on your situation, may be able to assist you in achieving your objectives. Although both forms of funding will provide you with the funds you need, they operate in very different ways. This article aims to discuss the difference between a personal line of credit vs personal loan.

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