FINANCING GROWTH

SO WHAT IS FINANCING GROWTH?

Financial growth is how businesses find money to help their business grow and expand in popularity. It is the different ways in which a business can find money to support them.

HOW DO BUSINESSES DO THIS?

Businesses do this by finding internal and external sources. Internal sources being money coming into the business from things such as profit or asset sales to help with financial profits, and external sources being money coming in from outside of the business like bank loans and other sources like that.

WHAT EFFECTS DOES FINANCING GROWTH HAVE ON A BUSINESS?

If you use internal sources to gain money then it is an advantage. This is because you are using sources within the business to gain money, an example of this is that you are selling goods that are not needed in the business to gain money. If you use external sources to gain money it could be both an advantage and disadvantage. In the respect of it being an advantage you could borrow money from the bank and have to pay it back in little installments throughout the months which doesn't effect the income to the business. In the respect of a disadvantage you could borrow a lot of money but at a higher interest rate meaning that you will have to pay back a lot more money than you borrowed.

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