Financial Planning And Budgetary Choices : Sainsbury 's Supermarket
1.1 Identify the sources of finance available to a business
“The financial resources are the money available to a business for spending in a form of cash, liquid securities and credit lines.” (Business Dictionary, 2015)
There are different financial needs:
Long term finances. Businesses need long term financing for purchasing new equipment, organization extension and income upgrade. The methods for long term financing are as per the following: sale of assets, share capital, mortgages, bank loans, leasing, debentures, venture and grant
Short term finance. This type of finance, lasting for one year or less, is to increase inventory orders. Short term financing contains the following financial instruments: trade credit, credit cards, leasing, bank loan and bank overdraft.
Financial sources can be additionally grouped in: internal sources and…