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.