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Sources of Business Finance - Coggle Diagram
Sources of Business Finance
Short-term sources
Overdraft
Trade credit
Making an agreement to pay at a later date
Not used for a long time
Long-term sources
Personal savings
Money that comes from your own bank account
Venture capital
Share capital
Loans
Money that you borrow from the bank
Retained profit
Profit that you have saved
Crowd funding
When other people donate money for your business
Money inflows
The money that goes into the business
There are many sources of business
Income
Finance
Smaller businesses may need finance in order to achieve the businesses' aims and finances
Money outflows
Money that goes out of the business
Not a source of business finance
Need business finance in order to cover up the outflows
Need the finance in order to not go into debts