Business: Section 3 (Sources of Finance)
- Created by: Georgia Vyse
- Created on: 26-03-14 19:28
View mindmap
- Sources of Finance
- Why do firms need finance?
- Start up capital.
- Finance poor initial cashflow
- Day to day running , working capital.
- Customers delayed payments
- Expansion
- Small firms - Five main sources
- Grants - Given to qualifying new or small firms. E.G Princes trust.
- Trade Credit - Rather than customer paying cash on delivery , Invoice given allowing time to earn money.
- Overdrafts - Let the firm take more money. High interest charges.
- Loans -3 types
- Bank - Quick easy , but repaid with interest. Bank may require collateral (Repossess assets)
- Friends and family - Hard to persuade but good alternative.
- Mortgages- More than 5 years , buying property. You can remorgage house (Acts as collateral)
- Venture capital - Invested by indivduals or businesses who specialse in giving finance. E.G Dragons den
- Why do firms need finance?
Similar Business Studies resources:
Teacher recommended
Comments
No comments have yet been made