Funds example sentences

In some cases, business is required to mortgage its assets as security while obtaining funds from external sources.arious sources of funds available to a business can be classified according to three major basis, which are time period (long, medium and short term), ownership (owner's funds and borrowed funds), and source of generation (internal sources and external sources).Sometimes, the accommodation parties agree to raise the funds through an accommodation bill for mutual benefits.It is an unsecured promissory note issued by a firm to raise funds for a short period The maturity period of commercial paper usually ranges from 90 days to 364 days.Similarly, the purpose for which funds are required need to be considered so that the source is matched with the use.This means organising more funds and recruiting more artisans.With the issue of debentures, the capacity of a company to further borrow funds reduces.Generally, the cost of CP to the issuing firm is lower than the cost of commercial bank loans; A commercial paper provides a continuous source of funds.These institutions are required by law to keep proper accounting records and keep proper control over the utilization of their funds.Proprietary ratio expresses relationship of proprietor s (shareholders) funds to net assets.The stores generally face shortage of funds as membership is limited.The sources for raising borrowed funds include loans from commercial banks, loans from financial institutions, issue of debentures, public deposits and trade credit.Similarly state governments will establish State Employment Guarantee Funds for implementation of the scheme.Loan from a bank is a flexible source of finance as the loan amount can be increased according to business needs and can be repaid in advance when funds are not needed.Separate disclosure of cash flows arising from financing activities is important because it is useful in predicting claims on future cash flows by providers of funds ( both capital and borrowings ) to the enterprise.