Studied by 1 personInternal Finance
Finance sourced from within the business
Retained Profit
Profit reinvested back into the business from previous years
External Finance
Finance obtained from sources outside the business
Family and Friends
Personal connections lending money, often to sole traders
Banks
Financial institutions providing loans to businesses
Peer-to-Peer Lending
Obtaining a loan from individuals or institutions
Business Angels
Investors providing funds in exchange for a share of the business
Crowdfunding
Individuals investing in businesses in return for a share
Loans
Borrowing money from a bank with an obligation to repay
Overdrafts
Allowing a business to spend more than its current account balance
Leasing
Renting assets needed by the business
Trade Credit
Short-term financing from suppliers allowing deferred payment
Grant
Money provided by the government that does not require repayment
Share Capital
Finance invested in a company through shares
Venture Capital
Funds provided to high-risk businesses in the form of shares and loans
Unlimited Liability
Owner is personally responsible for all business debts
Limited Liability
Owner's liability is limited to the value of their share capital
Business Plan
Document outlining the business's nature and growth strategy
Cashflow Forecast
Document predicting cash inflows and outflows
Note
Flashcard