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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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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Business Line of Credit | Requirements, Types – How does it work?

business line of credit

Funds are the backbone of any business, especially at the growing phase for small and medium organisations. Although there are plenty of options available to fund a startup yet the business line of credit is the most popular and convenient method to get access to a fixed amount of money for businesses.

Even if, many other sources of finance available to small businesses or startups, but the lines of credit could be the best and easy to obtain as other options have lots of hassle, requirements and involve numerous complicated procedures.

Hence in this article, we shall go through the meaning, types, functions and requirements of a business line of credit. Let us first understand what exactly the business lines of credit are?

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ELSS vs Mutual Funds | 5 Major Aspects

ELSS vs Mutual Funds

ELSS (Equity Linked Saving Schemes) is nothing but a type of mutual funds which offers a tax rebate on returns earned during investment horizon, on the other hand, common mutual funds don’t such tax rebate. In this article, let us understand the major differences between ELSS vs mutual funds.

When it comes to mutual funds investment, there are two options whether one can invest in common mutual funds or in Equity linked Savings Schemes (ELSS) mutual funds. Although both ELSS and mutual funds are understood as a separate instrument yet ELSS is a branch of mutual funds, means mutual funds is a broad term whereas ELSS is a narrow term.  

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