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Sources of Capital (Internal Finance (Working Capital (Is the amount that…

- - - - You get money quickly when you need it
      - You wont get 100% of what the person owes you
      - Selling your unpaid customer invoices (accounts recivable) for a percentage of the total invoice to get the money sooner.
    - - You have more time to pay for the supplies and this gives you the chance to sell the supplies you buy to make revenue that you can use to pay for the supplies
      - You need to buy from the same place constantly to get good trade credit and this can be hard if you are fine tuning your product
      - A longer amount of time to pay for supplies you get from a supplier
    - - You are able to spend more money then you have at the moment allowing for bigger purchases that can lead to more revenue
      - If you don't pay the Overdraft in time then they will stop giving you overdrafts and trusting you with money
      - An extension of credit that allows you to go into negitive numbers for your bank account
  - - - A large, long term loan taken from the bank that is at a fixed rate of intrest
      - The payments can last on average 10 years making you have to pay the loan off for a very long time
      - You can get a large amounf of money for a stable intrest rate that will help you expand and then make profit to pay off the loan
    - - A small sum of money given by the government to startup businesses
      - You need to apply for the grant and the government wont give out many grants at all so it can be hard to get one
      - The money can be very useful to help you expand and grow faster
    - - You get investors that can help fund your growing business and idea
      - A firm that helps small businesses grow by giving them money and investing in them to help them grow.
      - The firm might ask for a royalty fee in return for investing
    - - An amount of money borrowed from the bank that is charged with intrest
      - You will have to pay it back with intrest eventually so if you dont make profit with the loan then youll have to work very hard to pay it off
      - Its a quick way to get some money fast to help expand your business
    - - Allows you to work up to paying for the large total at the end
      - When buying expensive items you can make a downpayment and then pay monthly over time to give you more time to get the right amount of time
      - There is some intrest charged making you pay a little bit extra
    - - Selling something and then leasing it back from the person
      - It is no longer your assest making your business less liquid
      - Doing this allows for you to keep using the assest but also to get some money from selling it
    - - A long term rent that is common with cars or land
      - You don't own it as an asset to your business and therefore you cannot liquify it if you need money
      - You are able to have somthing without needing to pay full price for it
    - - Releasing new shares into the market that can be bought and sold
      - If someone buys a large enough number then they might have majority of the shares making them own the business
      - You are able to make money for doing nothing if people buy your shares