Details.

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to meet the cost of the project the following means of finance are available=

1.share capital: there are two types of share capital- a) equity capital and preference capital, b) equity capital represents the contribution made by the owners of the business.

2. term loans: which are a very important source for financing new projects as well as for the expansion, modernization and renovation schemes of existing firms.

 3. debenture credit: there are two broad types debentures convertible debentures and non veritable debentures.

4. incentive sources: the government and its agencies may provide financial support as an incentive to certain types of promoters or for setting up industrial units in certain locations.

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Cost of Production & Evolution of Secondary Information »

5. misc. sources: a small portion of the project finance may come form misc. sources like unsecured loans.

6. Differed credit: which payment for the purchase of plant and machinery can be made over a period of time?