Methods+of+obtaining+finance

Top Shop is a well known company and they have several ways of obtaining finance. The reason the need finance can determine what method they would use. Top Shop as part of the arcadia group could use a bank loan as a source of finance as they are a successful company the bank would most likely allow them to take out a bank loan. They could also use trade credit this would help them if there cash flow wasn’t good and it means they could get there good of a suppler but not have to pay for them until a later date. Another source of finance would be retained profits this is the profits that have been kept back from previous years. Share issue is also available the share holders have limited liability and they will receive an annual dividend in return for their investments. This source can raise really large sums of money and it does not have to be paid back.