business -finance Flashcards
1
Q
Internal sources of finance
A
-personal or business savings
-reatined profits
-selling fixed assets
2
Q
external sources of finance
A
-bank loans overdrafts and mortgages
-loans from family and friends
-new partners
-share capital
-trade credit
-government grant
-hire purchases
-crowd funding
3
Q
Short term finance
A
*trade credit-
-businesses may give firm one or two months to pay for certain purchases
- useful for a small firm as they have time to earn the money needed to pay the debt
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