5.1 Business Finance Needs and Sources

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5.1 Business Finance Needs and Sources: Cambridge IGCSE Business 0264 lesson

5.1 Business Finance Needs and Sources is one of the 5 lessons in Unit 5 Financial Information and Decisions of Cambridge IGCSE Business 0264, for first examination in 2027. It is an editable PowerPoint of 27 slides written against syllabus sections 5.1.1 and 5.1.2, with 1 embedded video case study, 2 learning checks and an exit ticket. Also suitable for Cambridge IGCSE (9-1) Business 0774 and Cambridge O Level Business 7081, which share the same content.

Why businesses need finance, start-up capital, working capital and the short-term against long-term distinction, then internal and external sources, including crowdfunding and venture capital, which are new in 0264. A video looks at what limited access to bank loans does to a small business. The case study is Melaka Limited, an oil and gas company that raised $9.3 million through a share issue after a $5.7 million loss, and the lesson finishes on the factors for choosing a source and the debt-or-equity decision.

Slide from lesson 5.1 of Cambridge IGCSE Business 0264: Business Finance Needs and Sources

Learning objectives

Taken from the objectives slide of the lesson, which follows the syllabus wording.

5.1.1 The need for business finance

  • the main reasons why businesses need finance: start-up capital, capital for expansion/growth, replacing existing non-current assets, investing in new technology, working capital
  • short-term and long-term finance needs of a business
  • concept and importance of working capital

5.1.2 The main sources of finance

  • internal sources of finance: owners' investment, retained profit, sale of unwanted assets, working capital
  • external sources of finance: share capital or issuing shares, venture capital, bank overdrafts, leasing, hire purchase, bank loans, trade credit, government grants, crowdfunding
  • advantages and disadvantages of internal and external sources of finance
  • the main factors to consider when selecting a source of finance: size of business, legal form of business, amount required, length of time, existing loans, cost, purpose
  • recommend and justify an appropriate source of finance for a given situation

What is in the lesson

The running order below is the deck as sold. Every lesson in the course follows the same shape: learning objectives, content slides with the real business examples, a learning check after each section, a case study with questions, key takeaways and an exit ticket. A teacher answer key (PDF), with model answers to every learning check, case question and exit ticket, is included when you buy the unit or the complete course.

Slide by slide (27 slides)
  1. Title slide
  2. Learning Objectives
  3. Learning Objectives
  4. Why Businesses Need Finance
  5. Start-Up Capital: Financing the Beginning
  6. Case Study – 8-Bit Content
  7. oOo
  8. Question: How can limited access to bank loans affect a small business’s ability to… (video)
  9. The Lifeblood of Operations is Working Capital
  10. The Survival Challenge
  11. Short-Term vs Long-Term Finance
  12. Learning Check 1 – Finance Needs and Duration
  13. Internal vs External Finance
  14. Internal Sources
  15. External Sources: Short-Term and Flexible Finance
  16. External Sources: Long-Term Finance
  17. Crowdfunding and Government Grants
  18. Learning Check 2 – Sources of Finance
  19. Case Study: Raising Capital for Survival and Growth Melaka Limited, an oil and gas…
  20. The Central Role of Working Capital
  21. The Profit Paradox
  22. Improving Working Capital Management
  23. Choosing Finance: Key Factors (Part 1)
  24. Choosing Finance: Cost, Loans and Control (Part 2)
  25. Debt vs Equity Dilemma
  26. Application and Justification
  27. Exit Ticket

Where it fits

Week 29 of the 0264 scheme of work and pacing guide, which gives the course 46 weeks with a mock in week 41. Previous lesson: 4.6 Location Decisions. Next lesson: 5.2 Cash Flow Forecast. All 28 lessons: Cambridge IGCSE Business 0264.

How to buy

The lesson on its own: 5.1 Business Finance Needs and Sources on TES. The unit: Unit 5 Financial Information and Decisions. The whole course in one download: 0264 Complete Bundle. Lesson 1.1 is free with its answer key if you want to see the format first.