Source of Funds refers to the origin from which a business or individual obtains money for investment, operations, or other financial needs.
Sources of Funds are essential for financing business operations, investments, and growth. These funds can come from internal sources (within the business) or external sources (outside investors or lenders).
Understanding sources of funds helps in financial planning, capital structure decisions, and risk management.
"A company raises ₹10 crore by issuing shares (equity) and taking loans—these are its sources of funds."