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Sources of Finance - Coggle Diagram
Sources of Finance
External
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Overdrafts
A bank account which allows you to spend money that you don’t have. Money has to be paid back. There is
Trader credit
Ability to buy something without needing to pay for it immediately. Ex: tell a friend you will pay them back in two months
Crowd funding
Raising money from many people to fund a project, new business venture, product launch, or worthy cause
Leasing
A contract between a leasing company (lessor) and the customer (lessee). The lessee pays rental income to hire assets from the lessor, who is the legal owner of the assets
Microfinance providers
A banking service provided to low-income individuals or groups who otherwise would have no other access to financial services
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Internal
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Retained Profit
The amount of a business's net income that is kept within its accounts, rather than paid out to shareholders
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