SOURCE OF FINANCE by keara

VIEWS: 56 PAGES: 4

									SOURCE OF FINANCE

WHAT DO YOU THINK IT IS??

THE CORRECT DEFINITONS
The profit that the firm generates is re-invested into the business. Research shows over _____ % of business investment comes from retained profits Squeezing this within the business, for example by cutting stocks, chasing debtors, delaying payment to creditors

AN EXAMPLE…

Trading Profit

Working Capital

Asset Sales

Disposal of redundant assets, to finance development without borrowing

Ordinary Share Capital / Owners Equity

Money put into the business by the owner(s) Often individual’s savings. Has the advantage of no interest payments Medium or long term with variable or fixed interest rates; dependant on a well thought out business plan; likely to require collateral

Bank Loan

Overdraft

Going into the negative in a bank account; company allowed to overdraw up to an agreed level Loans to the business from individuals / financial organizations. For a specific length of time e.g. 25yrs, & secured against a specific asset Investment in smaller, riskier companies that are unable to raise finance through stock markets. May be a loan or part ownership required

Debenture

Venture Capital

THE CORRECT DEFINITONS
Medium or long term with variable or fixed interest rates; dependant on a well thought out business plan; likely to require collateral Investment in smaller, riskier companies that are unable to raise finance through stock markets. May be a loan or part ownership required

THE CORRECT DEFINITONS
Medium or long term with variable or fixed interest rates; dependant on a well thought out business plan; likely to require collateral Investment in smaller, riskier companies that are unable to raise finance through stock markets. May be a loan or part ownership required

THE CORRECT DEFINITONS
Medium or long term with variable or fixed interest rates; dependant on a well thought out business plan; likely to require collateral Investment in smaller, riskier companies that are unable to raise finance through stock markets. May be a loan or part ownership required

THE CORRECT DEFINITONS
Medium or long term with variable or fixed interest rates; dependant on a well thought out business plan; likely to require collateral Investment in smaller, riskier companies that are unable to raise finance through stock markets. May be a loan or part ownership required

Going into the negative in a bank account; company allowed to overdraw up to an agreed level

Going into the negative in a bank account; company allowed to overdraw up to an agreed level

Going into the negative in a bank account; company allowed to overdraw up to an agreed level

Going into the negative in a bank account; company allowed to overdraw up to an agreed level

Disposal of redundant assets, to finance development without borrowing

Disposal of redundant assets, to finance development without borrowing

Disposal of redundant assets, to finance development without borrowing

Disposal of redundant assets, to finance development without borrowing

Squeezing this within the business, for example by cutting stocks, chasing debtors, delaying payment to creditors Money put into the business by the owner(s) Often individual’s savings. Has the advantage of no interest payments Loans to the business from individuals / financial organizations. For a specific length of time e.g. 25yrs, & secured against a specific asset

Squeezing this within the business, for example by cutting stocks, chasing debtors, delaying payment to creditors Money put into the business by the owner(s) Often individual’s savings. Has the advantage of no interest payments Loans to the business from individuals / financial organizations. For a specific length of time e.g. 25yrs, & secured against a specific asset

Squeezing this within the business, for example by cutting stocks, chasing debtors, delaying payment to creditors Money put into the business by the owner(s) Often individual’s savings. Has the advantage of no interest payments Loans to the business from individuals / financial organizations. For a specific length of time e.g. 25yrs, & secured against a specific asset

Squeezing this within the business, for example by cutting stocks, chasing debtors, delaying payment to creditors Money put into the business by the owner(s) Often individual’s savings. Has the advantage of no interest payments Loans to the business from individuals / financial organizations. For a specific length of time e.g. 25yrs, & secured against a specific asset

SOURCE OF FINANCE

WHAT DO YOU THINK IT IS??

THE CORRECT DEFINITONS

AN EXAMPLE…

Trading Profit

Working Capital

Asset Sales

Ordinary Share Capital / Owners Equity

Bank Loan

Overdraft

Debenture

Venture Capital


								
To top