What do businesses need finance for?

Slides:

Advertisements

Similar presentations

Sources of Finance.

Advertisements

Re-cap on sources of finance – Unit 1

Business Studies Accounts & Finance An Introduction.

This test consists of 10 questions designed to test your understanding of the structure of and ability to simply analyse a Balance sheet. The links provide.

Lcameron1 METHODS OF OBTAINING F I N A N C E. lcameron2 WHY DO FIRMS NEED MONEY?  To survive and pay bills  To grow in size WHERE CAN THE MONEY COME.

17 Chapter Financial Management.

Financing a Business. When starting a business, an entrepreneur must combine: o 1. Human Resources— Employees and Managers o 2. Natural Resources—Products.

Sources of Finance BTEC Business Level 3 - Financial Resources Unit 2.

3.1 Sources of Finance Chapter 18 Part 1.

3.1 Sources of Finance Key Outcomes:

Lim Sei cK.  Often the hardest part of starting a business is raising the money to get going.  The entrepreneur might have a great idea and clear.

TAKEOVERS, MERGERS AND BUYOUTS

> > > > Financing and Investing Through Securities Markets Chapter 18.

Business Finance.

Level 1 Business Studies

Source of finance All businesses need money to finance business activity. This can be for the initial setting up of the business, for its day-to-day running.

Which source of finance? The following statements could be describing which sources of finance?

Why Does a Business Need Finance? What is the Difference between LONG and SHORT terms of Finance? What is the Difference between INTERNAL & EXTERNAL sources.

Financing Growth Unit 3 Topic

Financing Growth You need to know internal and external sources of finance. You also need to know the advantages and disadvantages of a range of different.

Concept 1. LEQ 1 What methods can be used to obtain capital for a business?

Financial Management Chapter 17. Define finance and explain the role of financial managers. Describe the components of a financial plan and the financial.

3.1 Sources of Financing Chapter 18 Part 2.

SOURCES OF FINANCE. BUSINESS GROWTH - START UP CAPITAL ON THE LEFT, ONGOING FINANCING NEEDS ON THE RIGHT……

Sources of Funds.

Financial Management Chapter 17.

Chapter 17 Financing a Business Methods of Obtaining Capital Selecting a Method of Obtaining Capital Sources of Outside Capital.

Finance & Sources of Finance IB Business Unit 3 Finance.

211 Internal Finance AS Edexcel New Specification 2015 Business By Mrs Hilton for.

Unit 18. The big picture When starting a business you will need to raise some money to be able to get the business started. There are two ways of raising.

Financing Business. Finance decisions are probably one of the most important decisions managers have to make decisions on If financing is wrong then consequences.

Topic 3: Finance and Accounts

Working capital is the money a business needs to pay its short term expenses. These include: Expenditure such as staff training Raw materials or stocks.

Sources of finance Hodder & Stoughton © 2016.

Unit 3 – Sources of Finance All types of business need money to? Write 4 things down. Buy supplies – from suppliers Pay staff Buy equipment Pay bills Pay.

Raising Finance What you need to know!.

Finance (basics).

5.3.1 Making financial decisions: sources of finance

TAKEOVERS, MERGERS AND BUYOUTS

Sources of Finance.

Sources of finance The need for finance

Theme 1: Sources of finance

Business Studies Sources Of Finance.

Obtaining Finance Unit 1 Topic

Business Finance Chapter 28.

Business Expansion Unit 5.

3.3.4 Financing growth A palace shirt A dark verb font Lasses teas

Date: 13th January 2016 Title: Obtaining Finance

Aims for today To identify ways of financing a business from Internal & external sources. To be able to recommend and justify the most appropriate source.

Chapter 26 – Cambridge Tutorial

Statement of Cash Flows

Knowledge Organiser Effective Financial Management

Obtaining finance.

Lesson Objectives All students will understand Most students will

Financing a business.

Chapter 11 Financial Markets.

Reasons for Business Growth

Topic 1.3 Chapter 18 Obtaining Finance

Objectives By the end of this lecture students should be able to:

Level 1 Business Studies

Sources of Finance.

Financial Markets and Risk

Chapter 18 Unit 5 Q6/7 Expansion

Sources of small business finance

Types of Financing for business operations

OBJECTIVES Internal Finance a) Owners Capital: personal savings b) Retained Profit c) Sale of assets External Finance Sources of Finance –

Finance for growth.

Presentation transcript:

What do businesses need finance for? Sources of Finance What do businesses need finance for?

Learning objectives To be able to state at least three different sources of finance for a new business. To recognise the difference between short- term finance and long-term finance.

How can businesses finance themselves? Short term finance Has to be paid back over 12 months Long term finance Can be paid back over many years

Internal and External Funding Internal funding comes from within the business External funding comes from outside the business

Internal funding How might businesses find funding within themselves?

Internal Funding Retained Profit Asset Sales Keeping profits and saving them to reinvest Asset Sales What can they sell?

External funding Share capital Debt Bonds Trade Credit

Share capital Businesses can issue shares in a business Shares are small parts people can own Dividends (small payments) are made to those who own them Public Limited companies can trade them on a stock exchange but Private limited companies cannot

Debt Overdraft Loan Bonds Trade Credit

Cross Sheet + read

Question Sheet Please read the sheet and answer the questions Extension Use the case study to answer the questions (p15)

Plenary One form of finance and an advantage!

Financing growth P83 QUESTIONS

Why do firms want to grow?

Why might a firm want to grow larger? Make a list or mind map of the reasons why a firm may want to grow larger. To understand how to finance a business from Internal & external sources

Why do firms want to grow? To understand how to finance a business from Internal & external sources

How can firms grow? The type of integration that firms use will depend on their situation. There are 3 ways it can be done: Internal Expansion – Expand by opening more outlets or employing more staff Mergers – Two businesses joining together to form a new or larger company Takeovers – Where one business buys at least 15% of another business to control it To understand how to finance a business from Internal & external sources

Exam questions