Sources of finance
The following is not exhaustive, but it identifies the major sources of finance. Debt and equity are discussed in more detail in a moment.
Sources of short-term finance
Trade credit from suppliers and trade partners. This helps finance inventory, either on terms (e.g. 90 days to pay) or a consignment basis (you pay the supplier only when you sell the goods).
Factoring. This is where you sell your invoices at a discount (maybe 90% of face value or less) and the factoring company takes full responsibility for collecting from your client. Factoring unlocks value from your invoices, but can be expensive and might damage your relationship with your customers if the factoring company is heavy handed. Note that accepting even a 5% ...
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