Discuss sources of finance available to a large organisation. - Scottish Highers Business Management - Question d - 2019

Debt factoring allows a company to sell its accounts receivable to a third party (the factor) at a discount. This means that instead of waiting for customers to pay their invoices, the company receives immediate cash flow, helping to manage working capital more effectively.

Trade credit is a method by which a company purchases goods from suppliers and agrees to pay for them at a later date. This source of finance can help businesses manage cash flow as they can sell the goods before payment is required.

Issuing shares is a way for large organizations to raise funds by selling part ownership of the company. This can involve both public offerings and private placements, allowing companies to attract investment from a variety of sources.

A mortgage can be taken out to finance the purchase of property or significant assets. It involves borrowing money from a bank or building society with the property as security. If payments are not made, the lender can repossess the property.