9A : sources of finance

Question 1

what is business Wales ?

Answer 1

a way on borrowing money from the Welsh government. fast track loans are allocated to a business

Question 2

define internal sources ?

Answer 2

funds found from inside the business

Question 3

what are some internal sources ?

Answer 3

• owners capital : funds provided by the owner ,usually from personal savings . no need to pay back with interest

*retained profit : profit back by business rather than pay back to business . business can now decide how much much is spent and when

• sale of assets : items of property owned by the company that can be sold e.g. delivery van

Question 4

define external sources ?

Answer 4

funds found from outside the business usually paid back with interest

Question 5

what are some external sources ?

Answer 5

• bank loan : very difficult to obtain for small businesses but if successful the is immediately available
• lets you withdraw money up to a limit ( which is not so high and you pay interest on the amount overdrawn.

*Business angels : individuals who invest their money to companies often providing advice however very easy to lose control of the business