There are a number of different revenue types in business, the most common of these are sales revenue, interest revenue, lease revenue and revenue obtained from service provision. These types of revenue can be explained as:
This is the most common form of revenue and is simply the revenue that is received when selling a product that the business provides. The sales revenue can be from something as simple as selling a chocolate bar in a sweet shop to selling a luxury car in a dealership. This type of revenue will make up the majority of the revenue that most businesses receive.
Interest revenue is the interest that is received from the money that is placed in a business bank account. The more money in the business bank account, the more interest is gained each year through interest. For this reason it is beneficial for businesses to have as much money as possible in the bank account.
This type of revenue can cover a number of items. Some businesses hire out their services and items and this can be classed as lease revenue. The cost of leasing is usually fixed so if a company is guaranteed to lease out their stock, they are guaranteed an extra income. Some companies also lease out buildings and cars, and again this type of revenue is classed as lease revenue, and can be beneficial to a business that has the capital to spend at the outset, and recoup that money through leasing.
- Service provision revenue
The revenue obtained from services is most common in businesses that provide a service, rather than selling a product. These services can range from building services to gardening services, and the service would normally be charged at an hourly rate.