Finance

Why does a business need finance?

• To start up a business - pay for premises, equipment, advertising
• Run the business - enough money to pay staff wages
• Expand the business - funds to pay for a new branch in a different country or city

Starting up a new business is often very difficult because it is difficult to raise the finance as they have very few customers and lots of competitors.

Ways to finance a business

• Internal sources - funds found inside the business, e.g. profits can be kept for finance expansion, or…