SOURCES OF FINANCE

1
SOURCES OF FINANCE

• OWNERS FUNDS
• ADDITIONAL PARTNERS
• RE-INVESTED PROFITS
• SHARE ISSUES
• LOANS AND OVERDRAFTS

• HIRE PURCHASE
• LEASING
• TRADE CREDIT
• LOCAL AND NATIONAL GOVERNMENT GRANTS

2
BUSINESS PLANS

• THESE WILL INCLUDE DETAILS SUCH AS
• Company name
• Registered address
• Business ownership
• Aims of the business
• What it intends to make/sell

3
FINANCIAL DOCUMENTS

• TRADING ACCOUNT sales-cost of sales GROSS
  PROFIT
• PROFIT AND LOSS ACCOUNT gross profit-expenses
  NET PROFIT
• CASH FLOW FORECAST monthly income monthly
  costs NET CASH FLOW
• BALANCE SHEET CAPITALLIABILITIES ASSETS

4
RATIO ANALYSIS

• RETURN ON CAPITAL EMPLOYED (ROCE)
•  
• NET PROFIT/CAPITAL EMPLOYED100
• CURRENT RATIO
•  
• CURRENT ASSETS/CURRENT LIABILITES