Sources of Finance.

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Presentation transcript:

Sources of Finance

Sources of Finance can be either: Internal External

Internal Sources of Finance Sale/lease back Reducing stocks INTERNAL Trade credit Sale of assets Retained profits

External Sources of Finance Personal savings Debt factoring Bank loan External overdraft Sale of shares Debentures

Your Task Complete Sources of Finance worksheet 1 Your task is to match the sources of finance with the correct definition of each term

Time Periods for Finance Finance is generally considered to be either: Short-term Medium-term Long-term 1 to 3 years 3 to 10 years Over 10 years

Your task Make sure you have Sources of Finance worksheet 2 Complete the table by deciding whether each source of finance is short term (1-3 years); medium term (3-10 years) or long term(over 10 years)

Homework You are to create a leaflet advising a friend about the best sources of finance to use when starting up a business