Finance - Sources of finance

Introduction

Money keeps a business running. The flow of cash through the business is a constant and ongoing requirement for the business to succeed. Many essentially profitable businesses have gone under because they ran out of cash. Perhaps they expanded too ambitiously, or perhaps they didn't keep a careful check on their costs. Either way, they could perhaps have survived if they had ensured an adequate flow of cash. So where does the money come from in the first place to set up a business or to help an established business expand? In this section we look at the various sources of finance and see which ones may be most effective for different circumstances.

Follow the links below to the section you want to look at:

• Explanation - a brief overview of the reasons why businesses need finance and where that money can come from.
• Theories - a more detailed look at theories relating to the different sources of finance. What are the advantages and disadvantages of each source? Which source is most appropriate for which purpose?
• Questions - some scenarios surrounding the case study of Biz Training Ltd and how they might raise funds for new projects.