によって Fabiana Paz 4年前.
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internal and external sources of finance
Businesses utilize various sources of finance to meet their operational and expansion needs. Internal finances include retained profits, personal funds, and the sale of assets, which offer control and cost benefits without incurring interest.
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internal and external sources of finance Business angels: Give more favourable financial terms than other institutions or lenders Venture capital: Provide funding that other financiers might regard as too high a risky. Leasing: Not need to have a high capital to purchase assets. Debt factoring: Get immediate cash to fund other activities or projects Increase business deman by charging lower prices for their products. Grants: Improve the welfare of people living in an area, Not have to be paid. Trade credit: Delaying payments to suppliers, business are left in a better cash-flow position. Overdrafts: It provides an opportunity for firms to spend more than they have in their acount. Loan capital: It is accessible and can be arranged quickly for a firm's specific purpose. Share capital: Entitled to dividends when profits are made. External sources of finance Sale of assets: Selling assets is that it is good way of raising cash. Retained profit: It is cheap because it does not incur interest charges. Personal funds: Sole tradersmaximize their control over the business. It is a preferred source of finance. Internal sources of finance
