sources of finance

capital expenditure

spending on fixed assets and capital equipment of a business

revenue expenditure

the need for a business to finance their daily and routine operations

retained profit

money a company keeps from its profits rather than paying it out to shareholders as dividends

sales assets

business can sell some of their fixed assets to raise finance

stock market

place for buying and selling shares in public limited companies

mortgage

a loan used to buy a property where the property itself serves as collateral meaning the lender can take it back if you don't repay the loan

debenture

unsecured debt instruments issued by companies to raise funds

overdraft

short-term loan enables a business to withdraw more money than exists in its bank account

trade credit

external finance that enables a business to obtain goods or services from a supplier without having to pay immediately

grants

given by government and don’t have to be repaid

subsidies

a sum of money granted from public funds to help a business keep the price of a commodity or service low

debt factoring

immediate access to cash without having to chase debtors

leasing

access to fixed assets without capital expenditure

venture capital

institutional investors and risk the money if investing organizations

business angles

wealthy individuals who risk their own personal money in a project