Source of Finance - A Level

Internal Source of Finance except

• Retained Profit

• Sales of Asset

• Sales of Share

• Owner's Savings

Two methods of obtaining a long term asset.

• Bank Loan

• Leasing

• Overdraft

• Hire Purchase

Issued by companies to raise debt finance, often with a fixed rate of interest.

• Shares

• Debentures

• Grants

• Debt Factoring

Providing financial services for poor and low-income customers who do not have access to banking services

• Grants

• Subsidies

• Microfinance

• Crowd Funding

Finance for small or start up businesses.

• Microfinance

• Grants

• Bank Loans

• Crowd Funding

Bank agrees to a business borrowing up to an agreed limit as and when required.

• Bank Loan

• Overdraft

• Creditors

• Factoring

Long term loans need to be repaid for

• Within a year

• More than a year

• More than five years

The use of small amounts of capital from a large number of individuals to finance a new business venture.

• Microfinance

• Crowd Funding

• Venture Capital

• Overdraft

A detailed document giving evidence about a new or existing business, and that aimed to convince external lenders and investors to extend finance to the business.

• Business Profile

• Business Proposal

• Business Plan

Factors influencing finance choice.

• Amount required

• Legal structure

• Interest and other cost

• Flexibility