2.1 Flashcards
types of sources of finance
internal sources of finance
owners capital: personal savings
retained profit
sale of assets
owners capital
when an Entrepeneur invests their own money into their business e.g. personal savings (how much they’ve invested into their business.
retained profit
sale of assets
assets are items of value owned by a business, sale of assets is the sale of a long term or fixed asset. These assets can be sold to get immediate cash.
external source of finance
Sources of finance:
o family and friends
o banks
o peer-to-peer funding
o business angels
o crowd funding
o other businesses
Methods of finance:
o loans
o share capital
o venture capital
o overdrafts
o leasing
o trade credit
o grants
family and friends
banks
peer 2 peer funding
business angels
crowdfunding
other businesses
loans
share capital
venture capital
overdraft
leasing
trade credit
paying the suppliers, a period of time after the goods/services have been received
grants
fixed amount of capital given by the government to fund specific projects- they’re usually associated with good causes.
businesses and limited and unlimited
unlimited lia
limited lia
sources of finance and un+lim
business plan
