Internal Sources of Finance
- Created by: ofields755
- Created on: 29-03-17 15:20
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- Internal Sources of Finance
- Owner's investment
- Money which comes from the owners own savings
- Doesn't have to be repaid
- No interest is payable
- There is a limit to be amount an owner can invest
- Retained Profit
- It is when the profits made are ploughed back into the business
- Doesn't have to be repaid
- no interest is payable
- Not available to a new business
- Business may not make enough profit to plough back
- Sale of Fixed Assets
- This money comes in from selling off fixed assets
- such as a piece of machinery that is no longer needed
- Good way to raise finance from an asset that is no longer needed
- Some businesses are unlikely to have surplus assets to sell
- Can be a slow method of rising finance
- This money comes in from selling off fixed assets
- Owner's investment
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