Causes of business finance are usually studied under the adhering to heads:
(1) Quickly Finance:
Short-term economic is needed to fulfill the recent needs of small business. The current needs occasionally includes payment of income tax, salaries or this kind of jobs, repair expenses, monthly payment to creditor and so forth The need for short term funding arises because gross sales revenues and purchase bills are not perfectly identical at all the time. Oftentimes sales can be minimal as compared to purchases. Even more sales may be about credit while shopping are on cash. Consequently short term finance is actually match these disequilibrium.
Sources of short term solutions are as follows:
(i) Bank Overdraft: Traditional bank overdraft is very trusted source of business pay for. Under this clientele can draw a number of sum of money over and above his / her original account balance. So it is easier for any businessman to meet quickly unexpected expenses