3.2 Sources of finance

• Apply personal funds, retained profit, and sale of assets

• Internal sources avoid external obligations but may be limited or reduce business capacity

• Apply share capital, loan capital, overdrafts, trade credit, crowdfunding, leasing, microfinance providers, and business angels

• External sources vary in cost, risk, control, availability, repayment, and suitability

• Evaluate appropriateness of short-term or long-term sources of finance for a given situation

• Match finance source to purpose, amount, duration, risk, cost, and ownership impact