1. Sources of Finance

2. Sources of Finance can be either:
Internal
External

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

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

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

6. 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

7. 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)

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