1.8 Raising finance. Candidates should be able to: list sources of finance available to start- up businesses differentiate between internal and external.

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Presentation transcript:

1.8 Raising finance

Candidates should be able to: list sources of finance available to start- up businesses differentiate between internal and external sources define: ordinary share capital, loan capital (bank loans and overdrafts), venture capital and personal sources assess the advantages and disadvantages of different sources

1.8 Finance What is finance? Why might a business need finance?

1.8 Internal sources of finance What are internal sources of finance? Examples:

1.8 Advantages of internal sources of finance

1.8 Disadvantages of internal sources

1.8 External sources of finance What are external sources of finance? Examples:

1.8 External sources of finance What is an overdraft? What is a bank loan?

1.8 Advantages of an overdraft

1.8 Disadvantages of an overdraft

1.8 Advantages of a bank loan

1.8 Disadvantages of a bank loan

1.8 Advice about loan capital The Princes Trust trust.org.ukwww.princes- trust.org.uk provides: The Prime Initiative provides:

1.8 Advice about loan capital The Islamic Bank Helps: Small Business Loan Guarantee Scheme Help:

1.8 Share capital What is share capital?

1.8 Share capital versus loan capital

1.8 Incorporation Successful small businesses often grow by becoming incorporated so that family, friends or other private investors can buy shares. Incorporated is …

1.8 Venture capitalists v business angels What is a business angel? What is a venture capitalists?