Definition
- Access to finance
- Access to finance limits growth because expansion is paid for from profits, borrowing or selling shares, and a young firm has few profits and no record to borrow against.
Example
Can you think of an example of access to finance?
A new café made £10,000 profit last year and wants an £80,000 second site. With no record of steady profits, its bank lends only part.
Test yourself
Can you name the four things that can stop a firm growing, however much it wants to?