Sources of finance

Firms with pooled funds that invest in innovative business start-ups with large risks but also exceptional returns

• Shareholders

• Business angels

• Sole traders

• Venture capitalists

Investments in fixed assets

• Deficit Expenditure

• Capital Expenditure

• Revenue Expenditure

• Debtoring Expenditure

Refers to a firm going public for the first time, thus begin trading its shares on a stock exchange

• Global Scale Offer

• Public Investment Fund

• Initial Public Offering

• Open Public Investment

When a firm rents fixed assets from a third party

• Loan capital

• Debt factoring

• Leasing

• Net capital

Medium - to long-term interest-bearing source of financing with fixed repayment, usually with collateral securities

• Loan capital

• Share capital

• Equity capital

• Working capital

Provide opportunities for short-term debt financing in excess of available cash but are repayable on demand

• Discounted Cash Flows

• Overdrafts

• Subsidies

• Grants

The funds raised from incorporating the company and issuing shares in limited liability company, and from the initial public offering

• Share capital

• Capital employed

• Total assets

• Capital expenditure

The funds that the firm uses to internally finance growth

• Capital employed

• Current assets

• Long-term finance

• Retained profit

The expenditure that finances daily operations

• Revenue expenditure

• Profit expenditure

• Net expenditure

• Current expenditure

When a firm liquidates an asset in order to lease the asset in return

• Off-Finance-Booking

• Sale-Lease-Back

• Back-Finance-Operations

• Sale-Purchasing-Agreement