3.1 Sources of Finance (Business) by Breanna DONOVAN https://padlet.com/donovb1/wowmoney All businesses need money to finance business activity. This can be for the initial setting up of the business, for its day to day running or for expansion purposes. Businesses can obtain their finance from a range of sources, such as bank loans or by selling unused assets. The choice of which source(s) to use use depends on several factors, including the size and type of firm, the time scale involved and the purpose of the finance. en-us 2021-11-18 03:52:52 UTC 2021-12-02 03:52:09 UTC hello@padlet.com Bank Overdraft donovb1 https://padlet.com/donovb1/wowmoney/wish/1898624698 When money is withdrawn from as bank account that is over the sum of money in this account 

A  bank overdraft is a line of credit that covers your transactions if your bank account balance drops below zero.

References:
-  https://www.westpac.com.au/personal-banking/personal-loans/overdrafts/definition/

]]> 2021-11-18 04:02:38 UTC https://padlet.com/donovb1/wowmoney/wish/1898624698 Creditors donovb1 https://padlet.com/donovb1/wowmoney/wish/1898624848 2021-11-18 04:02:44 UTC https://padlet.com/donovb1/wowmoney/wish/1898624848 Trade Credit donovb1 https://padlet.com/donovb1/wowmoney/wish/1898625666 2021-11-18 04:03:18 UTC https://padlet.com/donovb1/wowmoney/wish/1898625666 Factoring Debt donovb1 https://padlet.com/donovb1/wowmoney/wish/1898625845 2021-11-18 04:03:25 UTC https://padlet.com/donovb1/wowmoney/wish/1898625845 Leasing donovb1 https://padlet.com/donovb1/wowmoney/wish/1898627042 A contract out lining the terms under which one party buys another’s assets.

A leasing company provides a physical asset or service for use by a commercial client or individual for an established period of time (sometimes with provisions to purchase asset at the end of the contract) in return for regular payments, known as financial leasing.

References;
- https://firstforsustainability.org/risk-management/understanding-environmental-and-social-risk/client-investee-exposure-to-environmental-and-social-risk/leasing-company/]]> 2021-11-18 04:04:09 UTC https://padlet.com/donovb1/wowmoney/wish/1898627042 Leasing Hire donovb1 https://padlet.com/donovb1/wowmoney/wish/1898627488 The deal in which one party can use the asset of the other party for the payment of equal monthly installments is known as Hire Purchasing.


References;
- https://keydifferences.com/difference-between-hire-purchasing-and-leasing.html]]> 2021-11-18 04:04:27 UTC https://padlet.com/donovb1/wowmoney/wish/1898627488 Purchase Hire donovb1 https://padlet.com/donovb1/wowmoney/wish/1898627669 a hire-purchase contract allows the buyer to hire the goods for a ‘monthly rent’.

A system by which one pays for a thing in regular instalments while having the use of it.
(Definition from the dictionary)]]> 2021-11-18 04:04:35 UTC https://padlet.com/donovb1/wowmoney/wish/1898627669 Share Capital (including Venture Capital & Business Angels) donovb1 https://padlet.com/donovb1/wowmoney/wish/1898630205 Share Capital:
the money a company raises by issuing common or preferred stock, it means the total amount raised by the company in sales of shares

The part of the capital of a company that comes from the issue of shares.
(Definition from dictionary)

Venture Capital:
capital invested in a project in which there is a substantial element of risk, typically a new or expanding business
(Definition from dictionary)

Business Angels:
(Also called investor angels) People who invest their money in the initial phase of startups, in exchange for a participation in capital. They also usually carry out the role of a mentor and offer their consent and experience to entrepreneurs.

References;
- Dictionary 
- https://www.bbva.com/en/what-is-business-angel/
- https://www.investopedia.com/terms/s/sharecapital.asp


]]> 2021-11-18 04:06:10 UTC https://padlet.com/donovb1/wowmoney/wish/1898630205 Debentures donovb1 https://padlet.com/donovb1/wowmoney/wish/1898630884 A type of bond or other debt instrument that is unsecured by collateral. 
A ‘practical alternative’ to loans. Used to raise capitals or funds.
Debentures may pay periodically payments, caller ‘ coupon payments’ 
Documented in an indenture, a legal and binding contract between insurers and bond holders.

References;
- https://www.investopedia.com/terms/d/debenture.asp ]]> 2021-11-18 04:06:38 UTC https://padlet.com/donovb1/wowmoney/wish/1898630884 Grants & Government Subsidies donovb1 https://padlet.com/donovb1/wowmoney/wish/1898631329 Grants;
Sums of money given by the government or other companies to another business.

A grant can provide seed money for exploring a business opportunity, supply working capital for a business plan or provide assistance in other ways.

Government Subsidies ;
The discount given by the government to make available the essential items to the public at affordable prices, which is often much below the cost of producing such items.

The government gives companies money to create products that are cheep enough to be bought by people below the poverty line.



References:
- https://www.financialexpress.com/what-is/subsidy-meaning/1623426/
- https://gocardless.com/guides/posts/small-business-grants-overview/
- https://www.extension.iastate.edu/agdm/wholefarm/html/c5-08.html

]]> 2021-11-18 04:06:57 UTC https://padlet.com/donovb1/wowmoney/wish/1898631329 Retained Profits donovb1 https://padlet.com/donovb1/wowmoney/wish/1898632201 The retained earnings of a corporation is the accumulated net income of the corporation that is retained by the corporation at a particular point of time, such as at the end of the reporting period.
the cumulative net earnings or profits of a company after accounting for dividend payments. It is also called earnings surplus and represents the reserve money, which is available to the company management for reinvesting back into the business.

References;
- https://en.m.wikipedia.org/wiki/Retained_earnings
- https://www.investopedia.com/terms/r/retainedearnings.asp

]]> 2021-11-18 04:07:33 UTC https://padlet.com/donovb1/wowmoney/wish/1898632201 Sale of Assets donovb1 https://padlet.com/donovb1/wowmoney/wish/1898632509 refers to a business selling some or all of its property. This is frequently done as part of the sale or closing of a business or a merger between two businesses. The sale of assets for a business is more complex than for an individual.

References
- https://www.sapling.com/7261922/meaning-sale-assets

]]> 2021-11-18 04:07:45 UTC https://padlet.com/donovb1/wowmoney/wish/1898632509 Personal Funds (sole traders) donovb1 https://padlet.com/donovb1/wowmoney/wish/1898632758 Money that is received by an individual. But, it does not include ‘personal needs allowance’.

payments the individual receives, whether earned or unearned, including wages, pensions, Social Security benefits, and retirement benefits. "Personal funds" does not include personal needs allowance.



References;
- https://www.lawinsider.com/dictionary/personal-funds

]]> 2021-11-18 04:07:56 UTC https://padlet.com/donovb1/wowmoney/wish/1898632758 selling your own assets donovb1 https://padlet.com/donovb1/wowmoney/wish/1898632991 When a company or organisation sells their assets to another party. This could be because of lack of financial support, lack of expertise and etc.

The seller retains legal ownership of the company that has sold the assets but has no further recourse to the sold assets. The buyer assumes no liabilities in an asset sale.

References;
- https://www.investopedia.com/terms/a/asset-sales.asp

]]> 2021-11-18 04:08:05 UTC https://padlet.com/donovb1/wowmoney/wish/1898632991 Crowd Funding donovb1 https://padlet.com/donovb1/wowmoney/wish/1898637483 2021-11-18 04:11:06 UTC https://padlet.com/donovb1/wowmoney/wish/1898637483 Microfinance donovb1 https://padlet.com/donovb1/wowmoney/wish/1898637768 2021-11-18 04:11:17 UTC https://padlet.com/donovb1/wowmoney/wish/1898637768 Speedy Delivery (SD) donovb1 https://padlet.com/donovb1/wowmoney/wish/1915895099
Speedy Delivery (SD) is a private limited company that delivers freshly cooked meals by bicycle. SD only delivers. Restaurants subcontract SD to deliver meals to customers who place orders online and expect quick and efficient delivery. SD has been operating profitably for two years. Currently, it has the highest market share in the city.

SD is now facing two issues:

• It operates at 98 % capacity utilization. Recently, some restaurant owners complained to SD that meals arrived late and cold to customers.

• The market for home delivered, freshly cooked meals is growing quickly and some new delivery companies have just entered the market.

The CEO wants to address the delivery quality issues and the threat of competitors, two of whom recently merged. He is considering an internal growth strategy involving investing in new electric scooters and employing more staff to deliver a greater number of meals more efficiently. SD must raise a large sum of finance. Major shareholders are in disagreement regarding the internal growth strategy.

]]> 2021-11-28 04:59:52 UTC https://padlet.com/donovb1/wowmoney/wish/1915895099 Q. Discuss two appropriate sources of finance for SD to purchase the scooters (10 Marks) donovb1 https://padlet.com/donovb1/wowmoney/wish/1915895280 2021-11-28 05:00:15 UTC https://padlet.com/donovb1/wowmoney/wish/1915895280