How do I revise Sources of finance for GCSE?

Use MasteryMind's Sources of finance revision notes alongside practice questions and past papers. Focus on key definitions, worked examples, and exam-style questions to build confidence for your AQA GCSE exam.

Is this Sources of finance guide aligned to the AQA specification?

Yes. This revision guide is specifically written for the AQA GCSE specification and covers all required content for Sources of finance.

Sources of finance Revision Notes — AQA GCSE

Every business needs money to start, grow, and survive. This study guide covers the essential internal and external sources of finance, teaching you how to evaluate the best option for different business scenarios to secure top marks.

Overview

Finance is the lifeblood of any business. Without it, a start-up cannot purchase its initial assets, and an established business cannot expand or survive temporary cash flow shortages. This topic covers the various methods businesses use to raise capital. Examiners expect candidates to not only identify these sources but to analyse their costs (both financial and non-financial) and evaluate their suitability based on the specific context of the business (e.g., size, legal structure, age, and purpose of the finance).

Internal Sources of Finance

Internal sources are funds found inside the business. They are generally preferred as they do not incur interest.

Retained Profit

Definition: Profit kept within the business after taxes and dividends have been paid, used for reinvestment.

Sources of finance — AQA GCSE Study Guide

Overview

Internal Sources of Finance

Retained Profit

Selling Assets

Owner's Savings

External Sources of Finance

Bank Loan

Overdraft

Share Issue

Trade Credit

Government Grants

Evaluating Suitability