Sources and methods of finance

• Finance is needed to buy fixed assets like machinery and factories
• Finance is needed to pay day to day costs like wages so that a business can survive
• Sources of finance can be internal and external
• When choosing a source of finance things to consider;

  amount of money required- larger the amount the less likely internal sources will be used

  level of risk involved- risky business will find it hard to find sources of finance

  cost of the finance- some sources charge interest depending on the finance they offer