business-sources of finance Flashcards
what is trade credit?
where suppliers deliver goods now and are willing to wait for a number of days before payment.
what is overdraft?
where a bank allows a firm to take out more money than it has in its bank account.
what is a leasing?
where monthly payments are made for use of equipment such as a car.
what is share capital?
where monthly payments are made for use of equipment such as a car.
what is mortgage?
which is a special type of loan for buying property where monthly payments are spread over a number of years.
what are personal savings?
Owners who invest money in the business. For sole traders and partners this can be their savings
what are grants?
Grants from charities or the government to help businesses get started, especially in areas of high unemployment
what is venture capital?
capital invested in a project in which there is a substantial element of risk, typically a new or expanding business
what is a loan?
a thing that is borrowed, especially a sum of money that is expected to be paid back with interest:
which ones are short term finance??
trade credit
overdraft
loans
leasing
which ones are long term finance?
loans share capital mortgage venture capital personal savings profit grants
