BSG 1.3.5 Sources of finance

Learning question(s)
  • What is raising finance?
  • In what situations might a business need to raise finance?
  • What are the different types of finance?
  • Which types of finance are best for different situations?
 Mins  Activities  Teacher Notes  Resources
 1:5  Carry out tasks on projector screen.    Welcome
 2:10  Discuss the video and list the different reasons Innocent have needed to raise finance.    Video: The story of the Innocent drinks company
 3:5  Task: Look at your cash flow forecast. How much money does the business need to borrow and for how long? How do you know?    Task
 4:10+15  Discuss the slideshow and make notes, then use the slideshow to help you answer the questions on the worksheet.  Print worksheet double sided.  Slideshow: Sources of finance.

Worksheet
 5:  Extension tasks:
  • Outline three reasons why businesses need finance?

  • Give an example of an internal source of finance?

  • What are the three ways businesses can borrow from banks and financial institutions?

  • Start ups and small firms are considered very high risk and find it difficult to raise external finance. How do small businesses therefore secure external finance?

   
 6:  Extension, watch The Apprentice, clip 6    The Apprentice clips
 7:      
 8:      
   Review lesson