(i) Borrowing from financial institutions in the form of loans, bank overdraft and mortgage.
(ii) Trade credit. Buying goods for re-sale on credit so as to pay at a later date.
(iii) Hire purchase. Buying goods and paying for them on installment basis.
(iv) Debentures. Borrowing from members of the public for which interest is paid at a fixed rate and over a predetermined period of time.
(v) Sale and leaseback. Selling an asset like a building and then hiring it back for a specified period of time.
(vi) Retained profits. Profits made are not shared out as dividends but ploughed back into the business.
(vii) Discounting bills of exchange. Receiving payment from financial institutions at a discount against bills of exchange before their maturity.
(viii) Use of reserves/ provisions. The company may make use of funds set aside for depreciation, tax and bad debts to finance its day to day operations.
lemass answered the question on February 14, 2019 at 16:08
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