Discuss what are the various sources of Permanent Working Capital.

Sources of permanent working capital are the following: Owner's funds are the main source. Sale of equity stock or preference stock could provide a permanent working capital to the business with no burden of repayment particularly during short period. These funds can be retained in the business permanently. Permanent working capital provides more strength to the business. Another source of permanent working capital is bond financing but it has a fixed maturity period and ultimately repayment has to be made. For repayment of this source, company provides sinking funds for retirement of bonds issued for permanent working capital. Term loan from banks or financial institutions has the same characteristics as the bond financing of permanent working capital. Short-term borrowing can also be a source of working capital finance on permanent basis.