Unit D

Internal Sources of Finance :

Available from within a business.

• Retained Profit - Profit kept in the business to fund future expenditure
• Net Current Assets - The money available in the business to fund day-to-day expenditure
• Sale of Assets - Selling an item of worth owned by a business in order to achieve an immediate cash injection

External Sources of Finance :

Available from outside the business.

• Owner's Capital - Money invested in the business from the owner's personal savings
• Loans - Money borrowed from a financial institution normally for a set period of time and for a specific purpose
• Crowd-funding - Involves attracting investment from a large number of speculative investors many of whom may invest relatively dmall amounts
• Mortgages - Long-term loans, normally around 25 yrs,…