5.1.2—The main sources of finance
- Syllabus
- 0264–2027–2028
- Objective
- 5.1.2
- Level
- —
5.1.2—The main sources of finance
- internal sources of finance: owners’ investment, retained profit, sale of unwanted assets, working capital
- external sources of finance: share capital or issuing shares, venture capital, bank overdrafts, leasing, hire purchase, bank loans, trade credit, government grants, crowdfunding
- advantages and disadvantages of internal and external sources of finance
- the main factors to consider when selecting a source of finance: size of business, legal form of business, amount required, length of time, existing loans, cost, purpose
- recommend and justify an appropriate source of finance for a given situation
ConceptIGCSE Business Studies