Sources of finance bee business bee

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  • NEW YORK CITY DEPARTMENT OF FINANCE UNINCORPORATED ...
  • Sources of Funds: Equity and Debt - Economics
  • Job Description: Head of Finance and Business Administration

Job Description: Head of Finance and Business Administration

Sources of Finance
A business needs finance to operate. There are many different sources of
where finance can come from. Below make a list of all the different sources of
finance that you can think of that a business may have?
Sources of
Finance
Some of the sources of finance that a business will classed as internal sources
of finance.
What do you think is meant by the term "internal source of finance"?
Some of the sources of finance that a business will classed as external sources
of finance.
What do you think is meant by the term "external source of finance"?
Internal or External?
Highlight all of the internal sources of finance Green and all the external
sources of Finance Yellow.
Retained Profit Owners Capital Mortgage Net Current
Assets
Loans Crowd Funding Sale of Assets Venture
Debt Factoring Hire Purchase Leasing Capitalist
Grants Donations Trade Credit
Peer to Peer
Lending
Short Term / Long Term
The use choice of the source of finance that a business chooses to use could be
down to the length of time that it needs the finance for. This is known as short
term or long term.
For example if Bee wanted to purchase a new building then Bee would most
probably go to the bank and ask for a Mortgage. This would be long term as it
tends to last more than 5 years.
However if Bee could see that the business could have a liquidity problem in the
short term from her cash flow forecast, then she may decide to invest some of
her own money into the business, just until she gets paid by a large customer.
This would be very much short term finance.
You also need to be able to identify the advantages and drawbacks of using each
of the different sources of finance for a business.
You should complete the table below now using your knowledge of sources of
finance.
Short Advantages of Using Drawbacks of This
Source Internal / Term /
External Long Term This Source Source

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