Ways used by organizations to obtain the necessary financial resources and carry out a certain activity.
The sources of financing are the channels used by organizations and individuals to obtain the necessary financial resources and carry out a certain activity.
These sources of financing grant a margin of guarantees, allowing not only the daily development of their functions but also the realization of new projects and goals.
Among the main ones used today is the contribution of a financial investment entity, a bank, personal savings or contributions by partners or shareholders of the organization, or even debts with certain suppliers.
The main characteristics of the sources of financing are listed below:
In organizations, the sources of financing can be distinguished mainly by internal and external.
Internal sources, also known as social capital, are those that are found within the contributions of the partners.
That is to say that, in these, the capital comes from the money that the organization owns.
External refers to capital lent by a third party that does not fully belong to the organization, such as a shareholder or a financial institution that expects a profit in return.
In this, different methods are used by companies to find external financing, such as crowdfunding.
Therefore, the main concepts that comprise external sources of financing are:
In turn, the sources of financing can be classified according to the corresponding obligation period:
The importance of financing sources lies in the need that arises in organizations when carrying out certain projects or executing their daily functions without much difficulty. The sources of financing allow operating as a set of monetary resources, in such a way that they are considered the fuel of the company since they enable the successful development of a business. Ultimately, these are the ones that allow a company to meet its objectives and achieve its goals.
The fact that a company uses sources of financing is not only common, but it can be necessary. A company that does not enjoy these sources is going to move with great difficulty, due to the debts that will arise in a short time.
Some examples of funding sources are listed below:
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