5.3 - Sources of finance Flashcards
1
Q
State three internal sources of finance for a business.
A
Selling assets
Retained profit
Personal savings
2
Q
Name five external sources of finance.
A
Trade credit. Share capital / Venture capitalists. Bank loans or mortgages. Government grants. Overdrafts. Debt factoring.
3
Q
What factors affect the methods of financing a business might use?
A
The length of time that finance is needed for affects which type of finance is best.
Financial situation.
Costs.
Business size.
