Sources of funds for small scale business?
sourcing of money or financial resources is a finance function that links the savings function to the investment function in circular flow of income theory. It is an act of 'Transfer of finances from a savings surplus unit to a savings dificult unit.' The initial source or sources of finance for a business at take-off stage depend mainly on the type of business organization.
Sole proprietorship,partnerships and private companies source their funds from personal saving borrowed money and other credit facilities.
Sources of funds are either internal made up maily of:
a. Owner funds,depending on the dividend policy of a giving firm.
B. Borrowed funds (loans and other credit facilities).
C. sales of shares and bonds.
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