U4 Finance

• What are the internal sources of finance?

  Owner's Capital

  Retained Profits

  Sale of Assets
• What are the external sources of finance?

  Bank Loans

  Hire Purchase

  Government Grants

  Leasing

  Overdrafts

  Share Issues

  Family and Friends

  Venture Capitalists and Business Angels
• What are some ways to improve cash flow position?

  Reducing Staff

  Buying Cheaper Materials

  Delaying Payment to Creditors

  Chasing Bad Debtors Up

  Increasing Promotions

  Raising Finance from Bank/Selling Assets

  Increasing/Reducing Prices
• What is the equation for breakeven?

  Fixed Costs/Contribution per Unit