20) Medium Term Sources Of Finance Flashcards
1
Q
Medium term sources of finance
A
Bank loan
Leasing
Hire purchase
2
Q
Bank loan
A
Usually granted for a fixed amount
Has to be payed back in instalments
Interest charged
Hard to get loans
3
Q
Leasing
A
Renting equipment from a leading company means business doesn’t have to purchase them
Never own asset and renting costs can mount up
4
Q
Hire purchase
A
Allows business to big asset and pay it back over a period of time
Business does not own asset until last payment has been made and there are high interest rates
