An Introduction to Sources of Finance
- All businesses need finance to get started, allow them to grow and fund their continuing activity
- Finance may be needed for capital expenditure which is spending on fixed assets such as equipment, buildings, IT equipment and vehicles
- Similarly, finance is required for operating expenditures which is spending on raw materials or day to day expenses such as wages or utilities
- Businesses have different sources of finance available to them in the short-term and the long-term
Long-term and short-term sources of finance