Fund is basic need of an organization. It helps organization to plan better operational strategy and future plan of expansion and so on. In fact, liquidity or say fund is need and its management is skill set of an organization people to leverage the available fund facility in better way to maximize the profit and wealth of an organization. As fund is prime requirement of organization, its sourcing and optimum utilization (disbursement) is target area of every finance professional.
Sources of Fund:
We can observe so many sources to obtain the fund. But finalizing the sources of fund and cost associated with it is prime parameter to decide the ultimate route of fund. Majorly funding can be sources in two modes either Capital Instrument or Debt Instrument. And same can be exercise in Domestic or International Market, as per strategy of organization with fulfilment of applicable laws and regulation thereon. In this, we are focus and will be discussing on the sourcing of fund from foreign market on debt module precisely External Commercial Borrowing.