1.3.4 Sources of business finance Flashcards
1
Q
Def of Short Term Sources of finance
A
Trade Credit, Overdraft, Bank Loans, Secured Loans…
2
Q
Give 2 types of short-term sources
A
Overdraft, trade credit
3
Q
Give 6 types of long-term sources
A
Personal savings, venture capital, share capital, loans, retained profit, crowd funding
4
Q
Give 1 disadvantage of short-term sources
A
High interest rate
5
Q
Give 2 advantages of short-term sources
A
Shorter time for incurring interest.
Quick funding time.
6
Q
Give 1 advantage of long-term sources
A
Lower interest rate over a longer period of time.
7
Q
Give 1 disadvantage of long-term sources
A
Slow growth of equity
8
Q
Def: Personal Saving
A
