Sources of financeInfluences on finance decisions

All businesses need finance, whether for starting up, running themselves day-to-day or expanding. There are a number of funding sources used by organisations.

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Influences on finance decisions

There are many factors that will influence the types of finance a business decides to use:

  • the purpose of the finance
  • objectives of the organisation
  • amount of finance required
  • the type of business (not all sources of finance are available to all businesses)
  • length of time the finance is required for
  • finance cost ()
  • payback terms
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