1. Finance is an essential part of the success of a new business. The sources of finance for new firms were discussed last year. Once set up and running successfully, is finance no longer a problem for a business? No, because expanding businesses need capital or money just as much as a start-up business, and probably more of it, though for slightly different reasons. Expanding businesses need more capital in order to: • Purchase more fixed property, machinery, computers and so on. These are ‘fixed assets’ of the business. • Pay for more stocks and more customers who are offered time to pay after they have purchased the product. These customers become the debtors of the business. • Pay for the purchase of whole businesses, in other words, for takeover purchases.

2. Finance is an essential part of the success of a new business. The sources of finance for new firms were discussed last year. Once set up and running successfully, is finance no longer a problem for a business? No, because expanding businesses need capital or money just as much as a start-up business, and probably more of it, though for slightly different reasons. Expanding businesses need more capital in order to: • Purchase more fixed property, machinery, computers and so on. These are ‘fixed assets’ of the business. • Pay for more stocks and more customers who are offered time to pay after they have purchased the product. These customers become the debtors of the business. • Pay for the purchase of whole businesses, in other words, for takeover purchases.