Business Finance: Needs and Sources
- Start-up capital is the finance needed by a new business to pay for essential non-current (fixed) and current assets before it can begin trading.
- Working capital is the finance needed by a business to pay its day-to- day costs.
- Capital expenditure is money spent on non-current (fixed) assets which will last for more than one year.
- Revenue expenditure is money spent on day-to-day expenses which do not involve the purchase of a long-term asset, for example, wages or rent.
- Internal finance is obtained from within the business itself.
- External finance is obtained from sources outside of and separate from the business.
- Micro-finance is providing financial services – including small loans – to poor people not served by traditional banks.
- Crowdfunding is funding a project or venture by raising money from a large number of people who each contribute a relatively small amount, typically via the internet.
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business_finance_needs_and_sources.pdf |