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Sources of Finance, Sales of Assets - Coggle Diagram

- - - - Existing businesses can sell their unused assets such as selling old machinery and computer equipment that have recently been replaced.
  - - - This refers to the use of an owner's own savings. Personal funds are usually used to finance business start-ups.
- - - - funds provided by the government or other organizations
        
        such as foundations or agencies, often following a bid (application,
        
        proposal) which may be competitive.
    - - leasing
        
        Leasing is a contractual arrangement where the owner of an asset (lessor) allows another party (lessee) to use the asset in exchange for periodic payments. The lessor retains ownership while the lessee gains temporary use. Leasing is commonly used for real estate, vehicles, and equipment, providing flexibility and avoiding upfront capital investments.
    - - rich individuals who invest in start-up enterprises
        
        in return for part-ownership and some control in its strategic
        
        development.
  - - - an agreement between businesses that allows the buyer to pay the supplier later, after a period of time, such as one to three months.
    - - crowdfunding
        
        Crowdfunding is a method of raising funds for a project, venture, or cause by collecting small contributions from a large number of individuals, typically via an online platform. It allows individuals, businesses, or organizations to solicit financial support from a diverse group of people who are interested in the project or cause.
    - - when a lending institution (such as a bank) allows a
        business to withdraw more money than it has on its account, for a
        short, temporary period of time.
  - - - Venture capital
        
        Venture capital is financing provided to high-potential startups by investors in exchange for ownership. It fuels the growth and development of innovative companies.
    - - (also known as “debt capital”): money from a
        financial institution, such as a bank; it is repaid in instalments with
        interest (at a fixed rate or at a variable rate).
    - - (also known as “equity capital”): money raised from
        the sale of shares of a limited company; public limited companies
        sell their shares on the stock exchange.