Internal Sources of Finance

• Business Finance Options


  • Banks - Loans/Mortgage/Overdrafts -External Source
  • Selling Assets - Internal Source
  • Share Capital - PLC - External Source
  • Venture Capital - LTD - External Source
  • Owners Funds - Internal Source
  • Trade Credit - External Source
  • Retained Profit - Internal Source
  • Crowd Funding - External Source
  • Leasing - External Source
• Time Periods for Finance


  • Short term - 1 to 3 years (leasing, selling assets, crowd funding, trade credit, bank overdraft).
  • Medium term - 3 to 10 (profit).
  • Long term - Over 10 years (venture capital, share capital, owners funds, banks).
• • Businesses need finance to: start their operations and grow their operations.
  • Revenue Expenditure is the direct costs associated with making a sale (raw materials, wages, rent).
  • Capital Expenditure is costs associated with acquiring assets for the sale (purchasing machinery, purchase a building, paying dividends).