This is a long-term source of finance; 5 Internal SourcesRetained Profits. Which are: Long-term sources fulfil the financial requirements of a business for a period more than 5 years. Various types of long-term sources of fund are as described below:- Teaching Sequence and Time Allocation: Activities Reference Time Allocation Part I: Introduction Teacher recaps the purpose and sources of short-term finance and introduces the concept of long-term loan. Long-term Financing involves long-term debts and financial obligations on a business which last for a period of more than a year, usually 5 to 10 years.. Long term Sources of Finance. Choices in taking long-term loans Typically, a minimum amount is specified by the lender, while the maximum depends on the borrowers debt capacity and ability to repay. Long-term sources of finance also include venture capital. owners of an enterprise, which may The long-term sources fulfil the be a sole trader or partners or financial requirements of an enterprise shareholders of … Based upon the time, the financial resources may be classified into long term and short term sources of finance.Long term sources of finance are those that are needed over a longer period of time – generally over a year. It includes various other sources such as shares and debentures, long-term borrowings and loans from financial institutions. However, it may not be enough to cover your expenses in the long … Owner’s funds sources, medium-term sources and means funds that are provided by the short-term sources. The PowerPoint PPT presentation: "SOURCES OF FINANCE" is the property of its rightful owner. Business need to … Long Term Sources of Finance Read More » Long-Term Sources of Finance. Chapter 6- Long Term Sources of Finance - Free download as Powerpoint Presentation (.ppt / .pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. long term sources of finance ppt These assets may be regarded as the foundation of a business. On the basis of the period, the different sources of funds can be classified into three parts. If you're just starting a business, you can invest venture capital of your own. These are long-term and ‘borrowed funds’. Features of Long-term Sources of Finance – It involves financing for … 13.5.1.4 Intermediate to Long-term Loans 13.5.2 Development Bank 13.5.3 Small Business Lending Organisations/Schemes 13.6 Other Sources of Finance 13.6.1 Hire Purchase 13.6.2 Leasing 13.6.2.1 Difference between Financial Lease, Operating Lease and ‘Sales and … Long term sources of finance are those, which remains with the business for a longer duration of time. Long-term sources of fund: Fund raised through these instruments can be paid back over many years.It enables in fulfilling money requirements needed for longer time period. The main advantage is that it is not been paid immediately or within shorter time duration. A business requires funds to purchase fixed assets like land and building, plant and machinery, furniture etc. ... Of late, however, banks have started taking an interest in long term financing of industries in several ways. 2. explain the characteristics of the main types of long-term loans, and 3. select appropriate types of long-term loans in cases. Academia.edu is a platform for academics to share research papers. 2 minutes PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 1112 Prepared by Dr Buly Cardak Long-Term Loans (cont.) 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