Businesses require finance or capital for their establishment and expansion. The sources of business finance depend on the type of business. Some of these sources include;- Bank loans and loans from other financial institutions like insurance companies, building societies and pension fund schemes such as National Social, Security fund ( NSSF).

Trade Credit :- This is where a firm gets goods on credit from another firm without immediate cash payment. In this way, a business can acquire a working capital to run its operations.

Personal savings:- This is mainly a source of business finance for small business like sole proprietorship. Savings could have been accumulated from past incomes or inherited from some one else.

Trade bill:- A firm or business Unit may buy goods and services using a post dated cheque, payable in future. The seller can sell the bill for cash before its maturity date at a discount to a bank or discount house.

Retained profits:- Part of the profit made by a company not shared out to share holders as dividends is retained in the business and can be drawn on for expansion of the business- ie undistributed capital.

Selling of shares :- A firm can sell part of its shares to those  who want to earn dividends as a way of raising additional finance for its operation or expansion.

The debentures :- This is a kind of borrowing by firms where the holders are creditors to the firm not owners. Debenture holders therefore lend to the business and receive interest on debentures held.

Government assistance in form of subsidies. Subsidies are payments made by the government directly to a firm as a support fund.

Foreign aid:- Financial assistance from foreign donors is resorted to when it is difficult to raise money from other sources of capital.