2.1 Raising finance
2.1.1 Internal finance
2.1.2 External finance
2.1.3 Liability
2.1.4 Planning
Within: Own funds, retained profit (reinvested), Sales of assets
Outside: Banks, p2p, crowdfunding, family & friends, other businesses, business angels
Loan Capital long term (payed back w interest)
Overdrafts (short term) have + interest rates
Share capital (selling a share of the business)
Venture capital (investment in risk & reward)
Leasing (renting)
Trade credit (buy now, pay later)
Grants (x repayable)
limited: Legal responsibility for debts is only limited to the company's assets (LTD, PLC)
Unlimited: x limited to the company's assets (partnerships, sole traders)
x sell shares, rely on owners funds
Can raise capital through shares
Business plans: aims and objectives & how they will achieve
Cash flow forecast: inflows/ outflows over period of time
Business as usual !!!!!!
Net cashflow = inflow - outflows
Opening balance = closing - net
Closing balance = opening + net