Sources of capital

• Long term - usually above 7 years
  • Share Capital
  • Mortgage loan
  • Retained Profit
  • Venture Capital
  • Debenture
  • Project Finance

• Medium term - usually between 2 and 7 years
  • Term Loans
  • Leasing
  • Hire Purchase

• Short term - usually under 2 years
  • Bank Overdraft
  • Trade Credit
  • Deferred Expenses
  • Factoring

Capital market

• Long-term funds are bought and sold:
  • Shares
  • Debentures
  • Long-term loans, often with a mortgage bond as security
  • Reserve funds
  • Euro Bonds

Money market

• Financial institutions can use short-term savings to lend out in the form of short-term loans:
  • Credit on open account
  • Bank overdraft
  • Short-term loans
  • Bills of exchange
  • Factoring of debtors