Category: Sources of Finance

Factoring

Definition of Factoring Factoring is a financial service in which the business entity sells its bill receivables to a third party at a discount in order to raise funds. …

Convertible Bonds

A convertible bond is a type of debt instrument which also has equity-like features. It can be converted into the shares of the issuing company at a later date …

Bonus Share

Bonus shares are the additional shares given to the current shareholders of the company free of cost, in proportion to their existing shareholding. Such an event is called a …

Capital Employed

Capital Employed is the total amount of investment made for running the business. It should not be confused with the term “Capital”. “Capital” represents funds contributed by the owner …

Hypothecation

Hypothecation means offering an asset as a collateral security to the lender whereby the ownership lies with a lender and the possession is enjoyed by the borrower. In a …