Sources of finance

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Sources of finance by Mind Map: Sources of finance

1. Business Angels (investors)

1.1. Very affluent individuals who provide financial capital to small start-ups or entrepreneurs in return for ownership equity in the business

2. Venture capital

2.1. This is a financial capital provided by investors to high-risk firms or small business

3. Leasing

3.1. When a business makes a contract to acquire or use particular assets

4. Grants

4.1. Funds provided by the government, foundation trust or the agency

5. Subsidies

5.1. Financial assistance granted by a government, a NGO or an individual

6. Debt factoring

6.1. Where a business sells its invoice to a third party

7. Overdraft

7.1. When an institution allows a firm to withdraw money money that it currently has in its account

8. Loan capital

8.1. Money sources form institutions like banks

9. Share capital

9.1. Money raised from the sales of of shares

10. Trade credit

10.1. Agreement between business that allows the buyer of good or services to pay the seller at a later date

11. Personal funds

11.1. For sole traders, cheap and available

12. Retained profits

12.1. Is the profit that remains after a business has paid tax to the government

13. Assets

13.1. Any resource owned by the businesses

14. Sales of assets

14.1. Is when a business sells of it's unwanted assets

15. External

16. Internal