finance basics business

small firms 

firms nedd finance forfive reasons 

• set up capital for new firms 
• cash flow if they find it hard to cover thier costs
• sometimes customers delay payment 
• if a business in failing thye might need day to day costs 
• firms might need money in order to expand 

small firms have several sources of strt up finance 

• goverment grants- payments given out by the goverment 
• trade credit - given 1 to 2 months to pay this if not they end up…