3.1 Sources of Finance

Assessment Objectives
The role of finance for businesses: Capital expenditure Revenue expenditure	AO2
The following internal sources of finance: Personal funds (for sole traders) Retained profit Sale of assets	AO2
The following external sources of finance: Share capital Loan capital Overdrafts Trade credit Grants Subsidies Debt factoring Leasing Venture capital Business angels	AO2
Short, medium and long-term finance	AO1
The appropriateness, advantages and disadvantages of sources of finance for a given situation	AO3

• Sources of Finance and Their Advantages & Disadvantages – geared towards small business owners, this article provides the advantages and disadvantages of personal savings/funds, investors, bank loans, and government grants and loans.

• Sources of Finance Choices

• Sources of Finance Flashcards

• Sources of Finance – Bank Overdrafts and Bank Loans

• Sources of Finance for a Startup or Small Business

• Sources of Finance (Finance Sourcing) – a description of sources of finance in terms of ownership.

• Sources of finance – from the Food and Agricultural Organization of the United Nations a detailed description of various sources of finance.

• Finance – a shorter description of the various sources of finance.

• How to Get Funding for a Business – this article is great to know which source of finance is adequate for different types of businesses.

• Financing – a basic yet informative definition of financing.