MEANS OF FINANCING ,

STAGES AND FUNDING

AGENCIES

submitted by :
MURSHID E
MUHAMMED BASIL
Financing is the process of providing funds for
business activities, making purchases or investing
Financial institutions such as banks are in the
business of providing capital to businesses,
consumers and investors to help them achieve their
goals.
 Means of finance

 share capital
 term loans
 debenture capital
 deferred credit
 incentive sources
 miscellaneous sources
 Share capital
There are two types of share capital-equity capital and
preference capital. Equity capital represents the
contribution made by the owners of the business, the
equity shareholders, who enjoy the rewards and bear risks
of ownership. Equity capital being the risk capital carries
no fixed rate of dividend. Preference capital represents the
contribution made by preference shareholders and the
dividend paid on it is generally fixed.
 Term Loans
Term loans are provided by financial institutions and
commercial banks
 Debenture capital
It means a document containing acknowledgement of
indebtedness issued by a company and giving an
undertaking to repay the debt at a specified date.

 Deferred credit
It is a credit facility under which payment for the
purchase of plant and machinery can be made over a
period of time.
 Incentive sources
The government and its agencies may provide financial
support as inventive to certain types of promoters or for
setting up industrial units in certain locations. These
incentives may be in the form of seed capital assistance,
capital subsidy or tax exemption for a certain period.
 Miscellaneous sources

from miscellaneous sources like unsecured loans,

public deposits, and leasing and hire purchase
finance.
 Stages in Project Financing
 Pre- finance stage
1- Project identification
Identification A Project or Projects selected should be
integrated with the Strategic Plan of the Organization.
2- Identifying risk and minimizing
The right project at the right time at the right place and
at the right price
3- Technical and Financial feasibility
 Financing stage
a) Arrangement of equity/debt/loan.
b) Negotiation and Syndication of the same.
c) Documentation and checking all the rules and
regulations or policies relating to the starting of the
project.
d) Payment.
 Post Financing
a) Monitoring and review of project from time to time.
The project manager must keep a check on the proper
working of the project.
b) Project closure – It is ending the project
c) Repayment and monitoring
The amount taken in the form of loan, equity and debt
must be repaid back and proper monitoring and
control of the project must be carried.
 Funding Agencies
1- University Grants Commission (UGC)
2- All India Council for Technical Education (AICTE)
3- Council of Scientific and Industrial Research (CSIR)
4- Defense Research and Development Organization (DRDO)
5- Department of Atomic Energy (DAE)
6- Department of Ocean Development (DOD)
7- Ministry of Environment and Forests (MOEF)
8- Ministry of Water Resources (MOWR)
THANK YOU