2.1 Raising Finance Flashcards
1
Q
The 3 Internal sources of finance
A
Sale of assets
Retained profit
Owners capital
2
Q
Sources of external finance
A
Banks
Business angels
Family and friends
Government grant
Peer to peer
Crowdfunding
3
Q
Methods of external finance
A
Loan
Share capital
Venture capital
Leading
Trade credit
Grant
4
Q
2 pros and 2 cons of internal finance
A
+ immediate access
+ interest free
— may not be sufficient funding
— opportunity cost of personal use
5
Q
What is vital for getting finance
A
A business plan
6
Q
What’s included in a business plan
A
Aims and objectives
A cash flow forecast
