Sources of Internal and External Finance for American Chicken

Introduction American chicken is a small Penzance based fast food Company that specialises in burgers and pizza, they have been operating for three years and currently offer no home delivery. It is also is a mainly family and friends. At the moment American chicken has two main objectives; these are, to make a profit and to expand into Hayle. In this report I will advise American chicken on the different sources of finance available to them , both internal and external. By doing this it will help them achieve both of their business objectives mentioned before. Overview There are two sources of finances available to American chicken, internal and external. Internal sources of finance are finances raised from inside the company for example profit that is re-invested into the business known as retained profit. Internal finance is generally the type of finance that a new business would use as it has no previous record of success thus meaning it will be much harder for them to gain access to external finance such as bank loans. External sources of finance are finances that are generated outside of the company, for example hire purchase and leases. External finance is harder to generate as it requires the business to have a good reputation and also be setup in the first place. External finance would not be available immediately to a new business. Main body Internal sources of finance Retained profit Retained profit is â€Å"The percentage of net earnings not paidShow MoreRelatedThe kfc case study. human resouce problem in china9791 Words   |  40 Pagesthe HR program offered a great opportunity. However, there are also a lot of changes that Tony Wang must make to his managerial style once all his business is signed with the government. 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