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Your laptop has broken. List all the ways you could obtain the money to buy a new one. (5mins). LESSON TITLE: Sources of Finance (LO2.2) CF: Key Skills (L5) you will be able to use your numeracy skills to calculate financial transactions of a business and to interpret financial data.
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Your laptop has broken. List all the ways you could obtain the money to buy a new one. (5mins)
LESSON TITLE:Sources of Finance (LO2.2) CF: Key Skills (L5) you will be able to use your numeracy skills to calculate financial transactions of a business and to interpret financial data. LEARNING OBJECTIVES: LO1) To explain the internal sources of finance available to a business. LO2) To explain the external sources of finance (l-term/s- term) available to a business.
STARTER: Scenario (10mins) TASKS: Internal & external sources of finance Mini-case study Complete LO2.2 PLENARY: Biz Quiz (10mins)
LO1: Sources of Finance INTERNAL EXTERNAL S-TERM L-TERM Profit Working Capital Overdraft SHARE CAPITAL LOAN CAPITAL Sale of assets Bank Loan Hire Purchase Mortgage Trade Credit Debentures Leasing Government Industrial Specialists Debt Factoring Credit Cards Business Angels
LO2: Sources of Finance INTERNAL EXTERNAL S-TERM L-TERM Profit Working Capital Overdraft SHARE CAPITAL LOAN CAPITAL Sale of assets Bank Loan Hire Purchase Mortgage Trade Credit Debentures Leasing Government Industrial Specialists Debt Factoring Credit Cards Business Angels
LO2: Sources of Finance Debt Factoring 2) Pays invoice in full (minus commission) 3)Pays debt factoring company 1) Sells product to customer and sends invoice (30-90days credit) CUSTOMER
LO2: Sources of Finance INTERNAL EXTERNAL S-TERM L-TERM Profit Working Capital Overdraft SHARE CAPITAL LOAN CAPITAL Sale of assets Bank Loan Hire Purchase Mortgage Trade Credit Debentures Leasing Government Industrial Specialists Debt Factoring Credit Cards Business Angels
LO2: Sources of Finance Debentures - Loan with ‘no voting rights’ - Fixed repayment date - Fixed interest rate
LO2: Sources of Finance INTERNAL EXTERNAL S-TERM L-TERM Profit Working Capital Overdraft SHARE CAPITAL LOAN CAPITAL Sale of assets Bank Loan Hire Purchase Mortgage Trade Credit Debentures Leasing Government Industrial Specialists Debt Factoring Credit Cards Business Angels
LO2: Sources of Finance Industrial Specialists- - Such as ‘Venture Capitalists’ - Loans for businesses that find it difficult to raise funds using banks because they are seen as too risky. Business Angels- - Individuals who invest between £10,000 and £100,000. - Often in exchange for a stake in the business.
LESSON TITLE:Sources of Finance (LO2.2) CF: Key Skills (L5) you will be able to use your numeracy skills to calculate financial transactions of a business and to interpret financial data. LEARNING OBJECTIVES: LO1) To explain the internal sources of finance available to a business. LO2) To explain the external sources of finance (l-term/s- term) available to a business.