Business- sources/methods of external finance

source- Business Angels

Individuals invest in return for percentage of company

s-family and friends

Where a business borrows money from family or friends

s-peer to peer lending

s-banks

s- other businesses

Other business may invest in the business in return of percentage of shares

Method of finance- Crowdfunding

raising money for a project or venture by obtaining many small amounts of money from many people

M-Loans

amounts of money borrowed which will accumulate interest

M- Overdrafts

allow a business to spend in excess of the amount in its bank account, up to a predetermined limit.

M- Leasing

Renting a product while ownership title remains with the lease grantor

M- Trade credit

the practice of buying goods and services now and paying for them later- suppliers and distributors

M- Grant

a sum of money or other payment given for a particular purpose from the government

M- Venture capital

money provided by large investors (experts) to finance new products and new businesses

M- Debentures

M- Mortgages