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Sources of Finance
Sources of Finance
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Sources of Finance

Introduction

In our look at cash flow forecasting, we saw that lack of cash was one of the biggest problems facing a business. Without cash, the business would not be able to survive. With many possible uses of finance - wages, advertising, expansion, paying the interest on loans, etc - we should consider the various sources of finance available to businesses. Each source has its own advantages and its own disadvantages and different sources will be more appropriate in different circumstances.

You will need to be able to evaluate different methods of raising long and short term finance from a variety of sources.

Internal Sources

Retained profit, sale of assets, reducing stocks, trade credit


External Sources

Personal savings, commercial banks, building societies, factoring services, share issue, debentures
 
 
     
Internal | External | Challenges

 

 

 

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