Finance

Roles of Depository

Roles of Depository

Depositories are necessary for several reasons. They provide security for the bearer of financial instruments and provide liquidity in the market. They offer consumers a place to make both time and demand deposits. Due to the increase in the number and volumes of security transactions depositories were introduced. Dealing with securities in the physical form …

Roles of Depository Read More »

Internal Growth Rate

Internal Growth Rate

The goal of all businesses is to grow. As such owners, management, financiers and investors are all incredibly concerned with tracking the growth of businesses they are linked to. Growth can, of course, be financed from internal sources or external sources or a combination of both. Where growth is funded from internal sources it is …

Internal Growth Rate Read More »

Short Term Sources of Finance

Short Term Sources of Finance

Short term financing sources can be Trade creditors, Factoring services, Bill discounting, Advances from customers, working capital loans from banks, fixed deposits, receivables and payables. What is short term financing Short term financing refers to financing business operations for less than one year. Short term financing is also referred to as capital financing. It arises …

Short Term Sources of Finance Read More »