Sources of finance

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Sources of finance

Self financing- financing a business using own resources 

  • Sell property to raise money for the business (raising equity)
  • Use personal savings 
  • Give personal loans to the business 

Raising finance from friends and family 

Loans from banks - give people loans to set up businesses and must be paid back over a period of time with interest 

Venture capital- used when people cannot get finance from normal banks. 

Venture capitalist- invest in smaller and riskier businesses. They may make a loan or become part-owners. 

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