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Sources of finance by Mind Map: Sources of finance

1. Grants

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

2. Subsidies

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

3. Debt factoring

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

4. Overdraft

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

5. Share capital

5.1. Money raised from the sales of of shares

6. Trade credit

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

7. Personal funds

7.1. For sole traders, cheap and available

8. Retained profits

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

9. Assets

9.1. Any resource owned by the businesses

10. External

11. Internal

12. Business Angels (investors)

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

13. Venture capital

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

14. Leasing

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

15. Loan capital

15.1. Money sources form institutions like banks

16. Sales of assets

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