1.3.4 Sources of business finance Flashcards
1
Q
Crowdfunding
A
+ Easy,provides a lot of capital
- Target not reached leads to no funds for the business
2
Q
Trade credit
A
+ Can be used to manage cash flow
- Could detrioriate relationships with suppliers
3
Q
Loans
A
+ An effective source of finance when having a great business splan
- Interest
4
Q
Overdraft
A
+ A short-term boost for cash-inflow for the business
- Interest
5
Q
Share capital
A
+ Can quickly generate revenue from shares
- Could dilute ownership
6
Q
Venture Capital
A
+ Can offer specilist advice
- Coudl dilute ownership
7
Q
Owner’s funds
A
+ No interest provided
- Could not be enough to cover costs
8
Q
A
8
Q
Retained Profit
A
+
-
9
Q
A
