Sources of Finance
Internal
External
Loan Capital
Share Capital
Overdrafts
Trade Credit
Crowdfunding
Leasing
Microfinance Providers
Business Angles
Personal Funds (for sole traders)
Retained Profit
Sale of Assets
Money you have or get. --> Saving, investing money and most importantly managing your money.
Money that is already in the business, that you decide to keep in the business instead of taking it out.
When a business sells their property (receivables) to another business.
A contract for a specific amount of time (equipment, facilities. Ex. Car leasing).
A person who funds startups, in return for equity or convertible debt.
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.
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.
A loan that is taken to finance a company's everyday operations.
Share capital is the money a company is able to raise with common or preferred stock.
Crowdfunding is being able to raise money for a business by getting smaller amounts of capital from larger amounts of people.
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.