Sources of Finance

Flashcards covering the various sources of finance for businesses.

Sources of Finance

Sources of finance include financial institutions, crowdfunding, and private investment.

Finance in Business

Finance is required in all areas of business activity, including establishment costs and feasibility studies.

Owner's Equity

Internal sources of finance include owner's equity (personal savings).

Internal Sources of Finance

Sources of finance that come from within a business's control.

Friends and Family Financing

Friends and family providing funds.

Crowdfunding

Using sites like Patreon or Kickstarter to fund projects through donations.

Private Investment

Individuals investing money into a business in exchange for shares.

External Sources of Finance

Sources of finance that come from outside the businesses control.

Financial Institutions (Banks)

Banks offering short-term borrowing (1-2 years).

Overdraft

Over-borrowing from an account up to an agreed limit; flexible, but amount is limited and negotiated.

Bank Bill

Very short-term loan (3-6 months) to pay; immediate, but limited and must be paid for.

Trade Credits

Supplier provides product under expectation of payment later.