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# 1.2 Internal sources of finance

Table 2 (a) summarises the sources of finance that you will cover in this course. You will start by looking at examples of internal sources of finance (emboldened in the tale), beginning with short-term examples and concluding with the most common source of long-term internal financing.

## Table 2 (a) Sources of finance

| Internal | External
|  | Debt | Equity
Short-term | Debt factoring Invoice discounting Working capital management | Bank overdrafts Bank loans Crowdfunding Peer-to-peer lending | Crowdfunding
Long-term | Retained earnings | Bank loans Financial lease Hire purchase agreements Bond issuance | Business angels and venture capital Stock issuance

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OpenLearn - Organisations and the financial system
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