Funding SourceThe concept of fountain it has several uses. The term can be used to refer to the support, the medium wave base Of something. The financing, on the other hand, is the act and result of financing: grant money to pay for something, cover the costs of a project or activity.

A Funding Source, therefore, is the origin of an economic resource that allows the coverage of an expense or an investment. It is usually a Bank or another type of financial institution.

Usually a source of financing is used when a credit that allows complementing own resources. Suppose that the owner of an SME wants to purchase a machine to increase its productive capacity. Due to the high cost of the device, you decide to use a source of financing to obtain a loan, which it plans to return thanks to the income obtained from the commissioning of the equipment in question. A bank, in this framework, lends the money that the businessman invests in the purchase of the machine.

In everyday life, many people turn to a source of financing to replace an appliance that breaks down at just the wrong time, to start a deal or just to pamper yourself. Nowadays it is not very difficult to access a loan, although this does not mean that this service is available to everyone: in general, a working contract is required in order to guarantee the solvency of the interested party.

Unlike what happened just a few years ago, nowadays we must not leave home to look for a source of financing or to hire their services. In fact, in a matter of minutes we can obtain the loans we need and buy the products of our dreams, all from our preferred device with an Internet connection, be it the computer, tablet or mobile phone.

The source of funding for a government program that provides subsidies to filmmakers for the development of films, meanwhile, it can be a certain area of ​​government, such as the Secretary of Culture. This means that the money awarded through this program comes from the budget of this dependency.

In the case of the bank that lends money, acts as a source of financing to obtain a gain (the interest collection). The Secretary of Culture which is the source of financing for a program that gives subsidies, on the other hand, it does not seek an economic benefit for its actions.

Let’s see below some of the types of loans that a financing source can grant:

Funding Source* bank credit: is the most common type of loan, since it can be accessed by both individuals and companies. Within this category we find personal and commercial loans, and they can also be classified according to whether they are short or long term. They are carried out by private banks and also by state ones;

* commercial papers: they are short-term promissory notes that certain entities can acquire to make an investment with their surplus money. Its cost is lower than that of a bank loan but, unlike this one, it does not offer warranty some;

* I will pay: it’s a commitment that two people assume to pay a certain amount of money before a date agreed between them. This method offers enough security for both, as long as the document contains the payment order and the debtor’s signature;

* credit line: it is another type of bank loan, which provides the client with a certain amount with a payment deadline. Just sign a document to access the money, which must be returned with an interest rate.