2. Sources of Finance

3. Sources of Finance can be either: InternalExternal

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

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

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

7. Time Periods for Finance Short-term 1 to 3 years3 to 10 yearsOver 10 years Medium-termLong-term Finance is generally considered to be either:

8. Your task 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) Make sure you have Sources of Finance worksheet 2

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