Sources of finance

stewart_megan23
Mind Map by stewart_megan23, updated more than 1 year ago
stewart_megan23
Created by stewart_megan23 over 6 years ago
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Describing the various sources of finance businesses could use.
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Resource summary

Sources of finance
1 Owners Savings
1.1 Owners own money
2 Retained Profits
2.1 Profits kept back from previous years
3 Bank Loans
3.1 A specific amount of money that must be paid back in instalments with added interest
4 Bank Overdraft
4.1 The business can use more money than it actually has in its bank account but will have to be paid back with interest
5 Government Grants
5.1 Finance from the government, the EU or an enterprise company that does not have to be paid back
6 Trade Credit
6.1 The business buys goods from the suppliers but does not pay for them immediately
7 Debt Factoring
7.1 Selling the businesses debt to another business for less than they are worth
8 Selling Shares
8.1 Investors pay to become a part-owner of the company. They receive a divide each year.
9 Issuing Debentures
9.1 A group of loans from individuals or other companies. They lend the money and receive back a faxed amount of interest as well as the whole amount of the loan
10 Donations from public
10.1 The general public give money to the business
11 Lottery Grants
11.1 Finance from the lottery fund that does not have to be paid back
12 Taxation
12.1 Money paid by people who work, the amount paid depends on how much they earn
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