Sources of Finance

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Sources of Finance
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Sources of Finance
Sources of Finance can be either
Internal
External
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Internal Sources of Finance
Sale/lease back
Reducing stocks
INTERNAL
Trade credit
Sale of assets
Retained profits
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External Sources of Finance
Personal savings
Debt factoring
Bank loan
External
overdraft
Sale of shares
Debentures
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Your Task
Complete Sources of Finance worksheet 1
Your task is to match the sources of finance with
the correct definition of each term
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Time Periods for Finance
Finance is generally considered to be either
Short-term
Medium-term
Long-term
1 to 3 years
3 to 10 years
Over 10 years
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Your task
Make sure you have Sources of Finance worksheet 2
Complete the table by deciding whether each
source of finance is short term (1-3 years)
medium term (3-10 years) or long term(over 10
years)
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Homework
You are to create a leaflet advising a friend
about the best sources of finance to use when
starting up a business