Learning Outcome 2

Assess the various methods through which organisations access funding and when to use different types of funding 

Investment decision-making:

• The main methods of financial appraisal to compare strategic or project options: payback period and net present value calculations.

Sources of finance for growth:

• The main sources of finance for growth and the benefits and drawbacks of each: bank loans, crowdfunding, peer to peer lending, angel and venture finance.

LO2 Assess the various methods through which organisations access funding and when to use different types of funding

• P3 Assess the potential sources of funding available to businesses and discuss benefits and drawbacks of each source.

• M2 Evaluate potential sources of funding and justification for the adoption of an appropriate source of funding for a given organisational context.

• D2 Critically evaluate potential sources of funding with justified argument for the adoption of a particular source or combination of sources, based on organisational needs.