Relationship Manager

1.0 Introduction: It is rightly said that finance is the life-blood of business. No Business can be carried on without source of finance. The financial manager is mainly responsible for raising the required finance for the business. There are several sources of Finance and as such the finance has to be raised from the right kind of source. Generally speaking, there are two sources of finance as follow: 1) SPONTANEOUS SOURCES: Finance which naturally arises in the course of business is called as
‘Spontaneous Financing’. Trade creditors, credit from employees, credit from suppliers of services etc are the examples of spontaneous financing. 2) NEGOTIATED FINANCING: Financing which has to be negotiated with lenders, say commercial banks, financial institutions, general public are called as ‘Negotiated Financing’. This financing may be short term in nature or long term. Other sources of finance are organized and shown in the below figure as follow:
Sources of Finance
Security Financing
Loan Financing
Internal Financing
Equity Shares
Retained Earning
Short Term Financing
Long Term Financing
Depreciation Fund
Preference Shares
Debentures

Figure (1): Sources of Finance.

Any business needs to finance its firms or promising ventures due to the following reasons as follow: 1) Start a business. 2) Finance new Technology. 3) Open new Market. 4) Moving to new premises. 5) Day to day running of business. As requested, this report will guide anyone who wants to start his own business by explaining short, long and medium terms in details along with the traditional and Islamic finances aspects as well. Valuable advices and recommendations obtained from presenting the Pros and cons of each type of sources of finance are summarized in the conclusions sections of this report.

2.0 Traditional Sources Of Finance:(1) The common hope when starting a