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Business finance resources can be studied under the following headings:
(1) Short Term Finance:
Short term financing is needed to meet today’s business needs. Current needs may include payment of taxes, salaries or wages, repair costs, payments to creditors, etc. Short-term financial needs arise because sales revenue and purchase payments are not always the same all the time. Sometimes sales can be low compared to purchases. Further sales can be made on credit while purchases are made in cash. So short-term finance is needed to offset this imbalance.
Short-term sources of finance are as follows:
(i) Bank Overdraft: Bank overdraft is widely used as a source of business financing. Under this the client can withdraw any amount over and above his original account balance. This makes it easier for entrepreneurs to meet short-term unexpected expenses.
(ii) Billing Discounts: Exchange invoices can be discounted at the bank. This gives the bill … Read more
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small enterprise enterprise definition ato
With our greatest-selling course Begin-a-Enterprise 100 and one. It’s a giant enterprise with quite a few alternate options. It is largely a do-it-your self pastime, so that you simply generate income by selling offers, expertise or providers to scrap bookers. You possibly can give applications or maintain occasions on scrap reserving. An ordinary answer to interrupt into this enterprise is to carry scrapbooking” events. You invite friends and acquaintances to your property, inform all of them about scrapbooking, and try to advertise the provides they might want to get began.
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