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2.1 raising finance - Coggle Diagram
2.1 raising finance
external
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share capital (selling a share of the business). no repayments but shareholders have their own demands
venture capital - sees potential for profit within an organisation, quite high risk
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trade credit - buy now, oay later facility
grants - non repayable sum of money usually from government, meets certain criteria
internal
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owners own money (often needed with a small business). no interest, repayments, but limited finance
retained profit, previous profits invested into the company
sale of assets, selling something business owns. can limit max capacity, analysis required. business might need to downsize and so it
liability
unlimited liability
UNincorporated companies, sole trader and partnership
cant sell shares no legal separation from owners to business, likely to rely on owners own funds/money.capital
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planning
a document created during business startup leading out the aims and objectives and how they hope to acheive them
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