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and sale of assets. If the business had a successful trading year and made a profit after paying all its costs, it could use some of that profit to finance future activities. This can be a very useful source of long term finance, provided the business is generating profit. Sale of assets belongs to the internal sources too. The business can finance new activities or pay-off debts by selling its assets such as property, fixtures & fittings, machinery, vehicles etc. It is often used as a short term source of finance.

2.2 external sources 外部融资
External source is finance that comes from outside the business. It involves the business owing money to outside individuals or institutions, mainly composed of three parts: the bank loan, ownership capital and venture capital.

2.2.1 The bank loan 银行借贷
Banks and credit unions offer loans to large and small businesses. A loan is useful for a business that is starting up or looking to grow. Loans are often used to buy fixed assets such as machinery and vehicles. Borrowings from banks are an important source of finance to companies. Bank lending is still mainly short term, although medium-term lending is quite common these days. Interest is the fee for borrowing the bank's money, which accumulates based on how much of the loan is used and how long it takes the business to pay back the funds. The long loan usually the payment periods is more than 15 years and always used for starting up new business and paid on a monthly installments . The short loan is for a small amount within the period of 5 years plus agreed charge.

2.2.2 Ownership capital 权益资本
Ownership capital is the capital owned by the shareholders of a company. It is an important source of finance for limited companies. A share issue involves a business selling new shares that entitle the shareholders to share in the control of the business. Each share gives the shareholder a vote on the direction of the company. The more shares a person holds, the more control they have over a company. A company can raise substantial funds through an IPO (initial public offering). The various types of shares are: ordinary shares(These are also known as equity shares and give the owner the right to share the company’s profits and vote at the firm’s general meetings) and preference shares.
2.2.3 Venture Capital 风险资本
Firms in the early stages of development can opt for venture capital. Some individuals join together to provide finance for new businesses that are just starting-up. They look for promising businesses and invest in them, hoping that the businesses will grow and that they will make a profit. This is similar to issuing shares. This option gives the financing company some ownership as well as influence over the direction of the enterprise. Venture capitalists make loans to new or expanding businesses especially established businesses that are crossing international boundaries for the first time hoping that the businesses will grow and that they will make a profit.

2.2.4 Leasing and Hire Purchase. 租赁和分期付款付款

Leasing involves a business renting equipment that it may use for several years or months but never own. It will have a contract with a company who may come in to repair and service the product. The deal may also involve the product being replaced with a new model本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。