Financing Working Capital

Dr. Rajinder Shriram Aurora

etc. ‡ Negotiated Finance: One which has to be negotiated with lenders For Example: Borrowings from Commercial. Credit from Employees.Sources ‡ Spontaneous Finance: Arises naturally in the course of business For Example: Trade Creditors. etc. General Public. Credit from Suppliers of Services. . Financial Institutions.

Sources of Working Capital Long Term Sources Negotiated Sources Internal ‡ Retained Profits ‡ Provision for Depreciation Spontaneous Sources Short Term Sources External ‡ Share Capital Trade Credit ‡ Sundry Creditors ‡ Bills Payable ‡ Notes Payable Internal ‡ Tax Provision ‡ Proposed Dividend External ‡ Bank Overdraft ‡ Cash Credit ‡ Trade Deposits ‡ Public Deposits ‡ Bills Discounting ‡ Short ² term Loans ‡ Long Term Loans ‡ Debentures .

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