Sources of Finance

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Sources of Finance - Mind Map

Mind Maps have been produced to introduce topics and give students an overview of key topics being studied. The maps can be viewed as a whole page or, for those who prefer a more linear approach, as a text version.

View larger version of the mind map.

Sources of Finance

Business Growth
- Internal
  - Generating Increasing Sales
  - Use of retained profit
  - 'Organic growth'
  - Sale of Assets
- External
  - Long Term
    - Shares
      - Ordinary Shares
      - Preference Shares
      - New share issues
      - Rights Issue
      - Bonus or Scrip Issue
    - Loans
      - Debentures
      - Bank loans (mortgage)
      - Merchant or Investment Banks
      - Government/EU
        
        Grants
  - Short Term
    - Bank loans
    - Overdraft facilities
    - Trade credit
    - Factoring
    - Leasing
  - 'Inorganic Growth'
    - Acquisitions
      - Merger
      - Takeover
Business Angels
- Small sums (<100K)
- Network of informal investors
Venture Capital
- Larger sums (>500K)
- Expertise
- Longer term involvement
- High growth businesses