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Sources of Finance - Coggle Diagram
Sources of Finance
External
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Overdrafts
An overdraft is an extension of a credit from a financial organization to the customer (Ex. Bank) because the customer account does not have enough money.
Trade Credit
A business-to-business agreement (B2B) where a customer can purchase a good or service without actually paying at the moment. They end up paying the supplier at another specific time.
Crowdfunding
Crowdfunding is being able to raise money for a business by getting smaller amounts of capital from larger amounts of people.
Leasing
A contract for a specific amount of time (equipment, facilities. Ex. Car leasing).
Microfinance Providers
Microfinance providers are financial services that are provided for unemployed or low-income people or groups of people that don't have a lot of access to banking services.
Business Angles
A person who funds startups, in return for equity or convertible debt.
Internal
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Retained Profit
Money that is already in the business, that you decide to keep in the business instead of taking it out.
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