SOURCES OF FINANCE (reasons to have sources of finance (to expand…
SOURCES OF FINANCE
reasons to have sources of finance
to expand business
setting up more branches
increase number of franchises
to merge or takeover
to purchase new technologies
outstanding bank loans
everyday running of the business
payoff electricity, gas, bills...
short-term sources of finance
everyday running the business
money coming from the inside of the business
money left from previous years
lease of assets
when renting anything with monetary value which le business owns
sale of assets
when selling unused assets which have a monetary value.
Money coming from the inside of the business
Only in england. where the prince gives oney to people who need it
a platform in which anyone can give money to the business does over the internet
modern business, attractive,new projects
amount of money borrowed for a fixed period of time and it has to be paid back with interests.
where people give money to new business that need money in change of owning some shares .
not plcs. new businesses , small businesses
a delayed payments normally from 30-90 days. up to six months in which you receive product but you pay it later.
trust-worthy business (sometimes ltds or plcs)
when small businesses need to pay small debts or supplies .
agreement with the bank in wich you can pass your limit
relatives and friends
small businesses (sole traders.partnerships,new businesses)
sale of shares
when selling shares to get more finaance . can be a disadvantage as they can buy majority of the shares and take power of it
PLC's or LTD's
long term sources of finance
expand the business