The paper "Understanding the Sources of Finance Available to a Business" is a great example of a finance and accounting assignment. Sublime Sports Company is a UAE based organisation that is mainly involved in producing soccer balls. However, it exports its products to different parts of the world, but mainly to the European countries and the countries of North America. On account of the increasing demand for their products in these countries, the organisation needs higher finance to meet the extensive demand. Contextually, the objective of the assignment is to identify and discuss all the possible sources of finance that would suffice their need for the same.
Moreover, it also illustrates the implications of these sources of finance to the organisation. Furthermore, the assignment also intends to suggest the appropriate sources of funding for the organisation. Furthermore, an analytical discussion of the costs that are associated with each of the possible sources of funding will be performed. 2. Discussion2.1 Identify and discuss all the Different Sources of Finance Available to the Company There are several sources of finance available to a modern-day organisation.
It may be for the long term or for the short term requirement for an organisation. These types of source of finance also depend upon the risk associated with the same. Some of the sources of finance involve high risk, while some have a lower risk. The risk in the source of finance generally depends upon the interest rate return. The sources of finance that have a higher interest rate return involve higher risk, while the sources of finance that have a lower interest rate of return involve lower risk associated with it.
Moreover, there are certain more categories of differentiating the sources of finance. These involve borrowing from the internal sources, where the stakeholders of the organisation provide the finance. The finance which is provided by the external bodies outside the organisation is the external sources of finance (Hussain, n.d. ). Based upon these categories, there are several sources of finance collectively.
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