1. Short term sources –
It is required to meet the day to day needs of the business. The short term finance is also known as short term capital which is required for a period not exceeding one year.
2. Medium-term finance –
It is required for modernisation, sales promotion, innovation in business. It is taken for a period ranging between 1 to 3 years.
3. Long term finance –
Funds required for more than 5 years. These funds are required for making an investment in fixed assets and to meet the permanent needs of the business.
