Sources of Finance and Techniques for Procurement and Operations of Ferry for Zylla Limited

Business Scenario for
Individual Report

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 4............................................................................................................................................3
Determine the sources of finance required by the company for the procurement of Ferry and
working capital requirements......................................................................................................3
Asses different type of techniques for procurement and operations of ferry..............................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business use different sources in order to finance such as borrowings, debentures, retained
earnings, working capital and shares. These funds are used by used business operations to know
the area of business. These are taken on the basis of time period and ownership. Capital
budgeting technique is used to determine the feasibility and profitability of the project. In the
following report it includes long term and short term finance to fulfil the demand of the business
operations of the Zylla limited (Barbier and et.al., 2021).
MAIN BODY
TASK 4
Determine the sources of finance required by the company for the procurement of Ferry and
working capital requirements.
A business can not survive without money, for smooth functioning of a money required. Sources
of funds refers to the modes through which money arranged for carrying out business operation
and to increase capital. Some sources which help in managing operational working capital
requirements of Zylla limited are as follows:
Need of long term capital for Procurement of ferry:
 Share issuing: A company can raise Equity fund by issuing shares in the public. Share
are the permanent source of finance until firm’s liquidation. A company can raise large
capital in small parts through shares.
 Debentures: Debentures are long term loans which is taken from people. Company has to
pay regular interest to the debenture holders on the behalf of such amount. Such amount
is used for miscellaneous expenses, working capital operations and also used for
purchasing ferry (Falk and et.al., 2019).
Need of short term capital to meet working capital requirement:
 Bank Loan: Bank loans are the short term liability it can be mature in one and more than
one year. Zylla limited can apply for a loan from bank to fulfil needs of their working
capital. The company has to pay certain amount of interest and return back loan amount
in the pre-determined period.