The term Sources of finance is to do with money and how the money is made and where it comes from there are a variety of different sources of finance especially when focusing on a business

The term Sources of finance is to do with money and how the money is made and where it comes from there are a variety of different sources of finance especially when focusing on a business. For an example there is internal, external sources of finance. Internal source of finance is where money is funded from inside the business and the money that the business makes is used to buy new items and to expand the business and also the business could sell there assets to gain some more money. Whilst external is getting money from outside of the business this could be a loan from the bank borrowing money from creditors ect.both examples of sources of finance are used regularly in successful business. These pay backs can be short term or long term. This usually depends on where the money is borrowed from and how much is borrowed. Short term means that it has to be paid back within a year. However long term pay back means that it can be paid back over many/a few years.