3.1 - 3.2) Intro to Sources of Finance

capital expenditure

spending on non-current assets

• recorded in balance sheet

• needs significant investment

• long-term

revenue expenditure

spending on a firm’s daily or routine operations

• recorded in profit/loss account

• not as significant amount as capital expenditure

• day to day spending

Internal finance

money obtained from within the business

List of internal sources of finance

1. personal funds

2. retained profits

3. sale of assets

External finance

money obtained outside the organization

list of external sources of finance

1. share capital

2. loan capital

3. overdrafts

4. trade credit

5. crowdfunding

6. leasing

7. microfinance providers

8. business angles