examples of external sources

Question 1

bank loan

Answer 1

business borrow money that must be repaid over time with interest

Question 2

overdraft

Answer 2

pre-arranged amount of money that a business is allowed to use when it has none, and repay whenever

Question 3

grants

Answer 3

amount of money given by european, national or local government to aid creation of business, don’t have to pay back

Question 4

venture capital

Answer 4

can be called an investor, someone who invests in start up business for a % share of profits

Question 5

hire purchase

Answer 5

buy an asset e.g. a car, pay for it monthly, not yours until ast payment

Question 6

trade credit

Answer 6

not immediately paying suppliers for stock, given a certain amount of days to pay

Question 7

share capital

Answer 7

money paid by shareholders to become owners or a limited company

Question 8

crowdfunding

Answer 8

small amounts of capital from large number of people to finance new business venture, you give rewards/returns for investments