Business Finance
How businesses raise money for growth and investment.
Key Sources of Business Finance
| Long-term | Medium-term | Short-term |
|---|---|---|
| Fiances business over many years | Finances major projects or assets with a long life | Finances day-to-day trading of the business |
| Share capital | Bank Loans | Bank overdraft |
| Retained Profits | Leasing | Trade creditors |
| Venture Capital | Hire purchase | Short-term bank loans |
| Mortgages | Government grants | Factoring |
| Long-term bank loans |
Debt Finance
Debt Financing means borrowing money from an outside source, with the promise of paying back the borrowed amount, plus the agreed-upon interest at a later date.
- Bank Loans
- Bank Overdraft
- Credit Cards
- Mortgages
- Peer to Peer lending
- Corporate Bonds
Equity Finance
Raising money by selling shares of your business.
- Angel Investors - Dragon's den
- Venture Capital - Investment bank
- Stock Market Listing - Initial public offering
- Crowdfunding