Sources of finance

Companies traditionally use banks to finance debt. However, since the financial crisis hit, most UK banks are reluctant to offer overdrafts without personal guarantees. Invoice discounting is now becoming more common, but can be quite expensive and also can leave a company exposed very quickly if sales are seasonal or decline over a very short period of time.

Other sources of finance include:-

cash/working capital
public debt
private debt
asset finance
supplier/vendor finance
hybrid
equity

A good business plan can enable all sorts of other financing options to become a reality!

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