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Other sources of finance - Coggle Diagram
Other sources of finance
Join ventures
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It is where 2 or more businesses join forces to finance a new business venture or product,
Franchising
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For an initial fee anf a share of profits, the franchisor allows other firms to use its brand and sell its products.
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Share issue
For limited companies, a share issue is a way of generating large sums of money.
Selling newly issued shares to investors raises more funds, but reduces the owners' stake in the business.
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Micro-financing
For forms in less industrialized countries, micro-finance has become an important source of finance.
Allows people on very low incomes to borrow small amounts of money to start up or expand a small business, often without the need to provide security.
Crowd-sourced financing
Used to generate money of micro-finance projects, another relatively new type of finance is crowed-finance financing.
Based on micro-donations, it utilises the social power of the internet to help small firms launch creative projects or environmentally friendly products.