Cambridge O Level Business Studies · Syllabus 7115 · Financial Information and Decisions
External Finance
What is External Finance?
Finance obtained from a party outside the business, such as a bank, a supplier, a leasing company, a shareholder, a bondholder, a microfinance institution or the public through a crowdfunding platform. External finance can raise far larger amounts than internal sources, but it imposes obligations: interest, repayment, security, or a share of ownership and control.
This definition is part of the Financial Information and Decisions chapter in Cambridge O Level Business Studies.
Last reviewed Syllabus 2026