Sources of Finance

  • Created by: Benjhigg
  • Created on: 30-03-15 16:06
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  • Sources of Finance
    • Internal Sources
      • Savings
      • Interest from savings and investments etc.
      • Share Issues etc.
      • Profits
      • Friends and Family
    • External Sources
      • Grants, from the government or organisations such as the lottery
      • Hire, purchases or leases of vehicles and equipment
        • Becomes an asset or is leased - this makes it insured by lease firms and is unaffected
      • Venture capitalists
        • They put money into the business in return for a share of the business
      • Loans, mortgages and overdrafts from banks and building societies
        • Mortgages require you to own 10-20% of what you want
        • Less interest is required from overdrafts if it is planned
      • Government incentives


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