sources of finance

• Long term term sources of finance

  • Share capital
  • Retained profit
  • Venture capital
  • Mortgages
  • Long term bank loans
• Short term sources of finance

  • Bank overdraft
  • Trade creditors
  • Short term bank loans
  • Debt factoring
• start up Internal sources of finance

  • Founder finance
  • Retained profit
  • Friends and family
• start up external sources of finance

  • Bank loan
  • Bank overdraft
  • Venture capitalist
  • Loans and grants
  • Crowd funding
• Factors affecting type and amount of finance

  • reason for needing finance: short/long term
  • cost of the finance: paying interest
  • flexibility of finance: repayment period
  • business organisational structure: ltd and plc find it easier to raise finance
• established business internal sources of finance

  • Retained prof
  • Working capital
  • sale of assets
• established external sources of finance

  • Issue shares
  • bank loan
  • Overdraft
  • Debt factoring
  • Venture capital
  • Suppliers (trade credit)