1. What is business cash flow? . . . . . . . . . . . . . . 236 2. How can a business prepare a cash flow forecast? . . 236 3. Why are cash flow forecasts important to a business? 239 4. What can a business do if it has cash flow problems? 240 5. What are the main sources of finance for a business? 241 6. How should a source of business finance be selected? . . . . . . . . . . . . . . . . . . . . . . . . 242
7. What are the main internal sources of business finance? . . . . . . . . . . . . . . . . . . . . . . . . . 243
8. What are the main sources of short-term business finance? . . . . . . . . . . . . . . . . . . . . . . . . 244
9. What are the main sources of medium-term business finance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
10. What are the main sources of long-term business finance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
11. What will a bank look for before agreeing to provide a business loan? . . . . . . . . . . . . . . . . . . . . 248 Chapter Review. . . . . . . . . . . . . . . . . . . . . . 248
Case Study A Business Idea
Frank Foley is a keen sports enthusiast. He was very frustrated that he had to travel over 60 kilometres to get to the nearest sports shop. However, his frustration also helped him to realise that there was a gap in the market for a local shop specialising in outdoor sports equipment. This business idea really appealed to him as he also wanted to turn one of his hobbies into a source of income. Frank did a lot of market research and decided that his enterprise idea had a high probability of success. Using his savings and a loan from his Local Enterprise
