Sources Of Finance - GCSE Business Definition

Sources of finance are the various methods through which a business can obtain the funds necessary to start, run, or expand its operations. In GCSE Business, understanding sources of finance is crucial as it involves both internal and external options. Internal sources include retained profits and the sale of assets, while external sources include loans from banks, share issues, crowdfunding, grants, and venture capital.

Each source has advantages and disadvantages and needs to be assessed for the costs, risks, and impacts on business control. Selecting the appropriate source is vital for effective financial management and strategic planning in a business.