Sources of finance

Own capital used by a sole trader to finance their business.

• Personal funds

• Retained profit

• Sale of assets

• Share capital

Accumulated earnings reinvested in the business instead of being distributed to owners.

• Sale of assets:

• Retained profit

• Personal funds

• Share capital

Funds obtained through loans, typically with interest and fixed repayment terms.

• Sale of assets

• Share capital

• Loan capital

• Crowdfunding

A bank allowance to spend more than the available balance, with interest on the excess.

• Business angels

• Overdraft:

• Share capital

• Crowdfunding

An agreement allowing a business to buy now and pay later, improving cash flow.

• Trade credit

• Loan capital

• Croudfounding

• Loan

Collective financing where many people contribute small amounts of money.

• Trade credit

• Being a shakr

• Crowdfunding

• Overdraft

Private investors who provide capital and expertise to startups in exchange for equity.

• Investors

• Business Angels

• Owner

• Trade credit

Accumulated earnings reinvested in the business instead of being distributed to owners.

• Retained profit

• Loan

• Crowdfounding

• Tanda