DBA 403: Etrepreneurship Skills Notes

Institution	South Eastern kenya University
Course	Bachelor of Acturial...
Year	4th Year
Semester	Unknown
Posted By	Mark
File Type	pdf
Pages	9 Pages
File Size	108.34 KB
Views	1577
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FINDING SOURCES OF FINANCING Three basic types of financing can be identified. These are: 1. Profit retention: This is an approach where cash is not withdrawn in form of dividends but instead uses the cash to finance the business. 2. Spontaneous financing: This is financing arising from increased sales. A such, there income to buy more inventories and suppliers can extend credits when they realize there is good business. 3. External financing: This comes from outside investors. The investors include creditors, equity investors or owner piping more finance in business.

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