Funding represents one of the primary function of the company. Therefore, it is very important to make the correct definition of finance, to identify possible problems as well as to solve them in a proper way. It is needed to consider all advantages and disadvantages in relations with all types of financing in business operations. Before every financial activity there is a financial decision made by financial managers based on internal and external information. Finance managers must firstly plan the acquisition and use of resources in order to maximize the value of a company. The financial system in a company is the bloodstream of the company in which cash and commodity flows are intertwined and it represents an important aspect of the company. There are different opinions or criteria which can be used to make classification of sources of financing. Three most common criteria used are time availability of the sources, origin of the sources, and ownership of the sources. Long-term financing sources are installment loans, bonds and shares that make up the share capital of a joint stock company. Short-term financing sources are short-term loans (secured and unsecured), commercial papers and factoring. The structure of long-term and short term sources of financing is presented in the paper on a concrete example of the company Saponia d.d. from Osijek, based on data from the financial statements for the period from 2017 to 2019. The company Saponia d.d. belongs to the category of large companies, and is active in the production of detergents and personal hygiene products.