2.1.2 External Finance Flashcards
1
Q
What are the external sources of finance?
A
family and friends, banks
peer-to-peer funding
business angels
crowd funding
other businesses
Methods of finance
loans
share capital
venture capital
overdrafts
leasing
trade credit
grants.
2
Q
Is this method of finance risky?
A
Always carries risk and is better to be self-financing as you can be in control of your own finances.
3
Q
When is the best time to use this method?
A
The best time to use external sources of finance is when the business has just started up as you would not have any finance from within the business to rely on.
