Sources Of Business Finance

Question 1

Name 3 long term sources of finance

Answer 1

• Retained profits
• Long term bank loans
• Venture capital

Question 2

Name 3 medium term sources of finance

Answer 2

• Bank loans
• Leasing
• Government grants

Question 3

Name three short term sources of finance

Answer 3

• Bank overdraft
• Short term bank loan
• Factoring (selling your receivables to a factoring company)

Question 4

Name three internal sources of finance

Answer 4

• Retained profit
• Working capital
• Assets (anything you own) disposal

Question 5

Name three external sources of finance

Answer 5

• Bank loan/ Overdraft (short term bank loan with high interest rates)
• Debentures/ Bonds (long term loan which is issued by the company, usually with a fixed rates of interest)
• Venture capital

Question 6

Name three internal sources of finance for a start-up business

Answer 6

• Founder finance (various personal sources of the entrepreneur)
• Retained profit
• Family & Friends

Question 7

Name three external sources of finance for start-up businesses

Answer 7

• Bank loans
• Business angels (provides funds and advice but in return have a share of their company or first set of revenue)
• Loans & Grants