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Internal and external sources of finance - Coggle Diagram
Internal and external sources of finance
Internal Source of Finance
These are sources of finance that come from inside of the business
Examples
Sale of Assets
Sales Revenue
Disadvantages
Not as accessible to small business
Usually not enough to cover a large expense
Advantages
Usually quicker to access
Usually don't have to pay intrest
External Source of Finance
These are sources of finance that come from outside of the business
Examples
Bank Loans
Venture Captilist
Disadvantages
Some external finance methods require the owner to give away part of their business such as shares or venture capitalists
Not accessible for all businesses - small businesses wouldn't be able to use bank loans as a example
Advantages
Usually have access to a larger amount of finance
Lots of different options that suits different businesses