Finance And Cas Flow

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Organisations in the private sector are split into four types of ownership structures, these are a sole trader, partnership, private limited company and a public limited company these businesses essentially need finance for many different reasons, these may be for long term or short term uses. The main types of financial backup that is needed for businesses are for starting a business up, expansion and development or maybe the business has just run out of money that is needed for it to be successful.

There are many sources of financial help an organisation can turn to for funding and can be different depending upon the business ownership and structure as some are more appropriate for the need of the business than others. These are categorised as the providing of the financial fund can be obtained within the business and out side the business.

Internal sources-These are the main types of financial help that most businesses can get access to freely. Limited companies use these more than other business ownerships.

* Personal savings

* Sale of assets

* Retained profit

* Working Capital

External sources

Ownership capital

* Shareholders

Non