1. 1.8 Raising finance

2. Candidates should be able to: list sources of finance available to start- up businesses differentiate between internal and external sources define: ordinary share capital, loan capital (bank loans and overdrafts), venture capital and personal sources assess the advantages and disadvantages of different sources

3. 1.8 Finance What is finance? Why might a business need finance?

4. 1.8 Internal sources of finance What are internal sources of finance? Examples:

5. 1.8 Advantages of internal sources of finance

6. 1.8 Disadvantages of internal sources

7. 1.8 External sources of finance What are external sources of finance? Examples:

8. 1.8 External sources of finance What is an overdraft? What is a bank loan?

9. 1.8 Advantages of an overdraft

10. 1.8 Disadvantages of an overdraft

11. 1.8 Advantages of a bank loan

12. 1.8 Disadvantages of a bank loan

13. 1.8 Advice about loan capital The Princes Trust www.princes- trust.org.ukwww.princes- trust.org.uk provides: The Prime Initiative www.primeinitiative.org.uk www.primeinitiative.org.uk provides:

14. 1.8 Advice about loan capital The Islamic Bank www.islamic-bank.comwww.islamic-bank.com Helps: Small Business Loan Guarantee Scheme www.berr.gov.uk www.berr.gov.uk Help:

15. 1.8 Share capital What is share capital?

16. 1.8 Share capital versus loan capital

17. 1.8 Incorporation Successful small businesses often grow by becoming incorporated so that family, friends or other private investors can buy shares. Incorporated is …

18. 1.8 Venture capitalists v business angels What is a business angel? What is a venture capitalists?