Sources of Finance

The company raises its finance through internal and external sources

Internal Sources :

It includes

a) Share capital

b) Undistributed profits of the companies.

External Sources
It includes

a) Issue of Debentures

b) Accepting Deposits from the public

c) Loans from Commercial Banks

d) Loans from Financial Institutions – such as, Industrial Finance Corporation, State Finance Corporation, Industrial Development Bank of India, Industrial Credit and Investment Corporation of India etc.