Sources of Working Capital: A Detailed Guide for Businesses and MSMEs

By RXIL

Sources of Working Capital: A Detailed Guide for Businesses and MSMEs

This guide provides a detailed explanation of the various sources of working capital available to businesses. It covers long-term sources used to meet permanent working capital needs, such as equity shares, retained earnings, debentures, and long-term loans. The content also explains short-term sources used for temporary working capital requirements, including bank finance, trade credit, and inventory-based financing. It highlights the importance of using long-term funds for stable working capital needs while relying on short-term sources to manage seasonal and fluctuating business requirements effectively.

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