Source of Finance. Introduction about sources of finance. Financial Resources. What the business have available it could be cash, securities, creditors , loan facilities and possessed.
Introduction about sources of finance
Trade credit: suppliers agree to accept cash payment at a given dat in the future failure to pay on time can create problems for future orders. (short term under 1 year)
Own savings: most small business are set up with the owners savings they are interset free but will be lost if the fails banks will not provide aloan or overdraft unlesss the owners are sharing the financial risk.
Trade Credit: this is a short term , trade credit means when you buy goods or services on acount e.g. buy something and not making immediate payments.
Family and friends you buy goods or services on : they could always look up to their friends and owner and expect some help from them however they will not always be in credit to help them out.