External Finance Flashcards
1
Q
Peer-to-peer lending
A
Involves people lending money to unrelated individuals avoiding using the bank
2
Q
External finance
A
Finance sourced from outside the business
3
Q
Family and friends
A
Money lent to you by “family or friends”
4
Q
Bank loans
A
Banks can loan money with an interest rate meaning they make their money back
5
Q
Business angels
A
Individuals who invest money in exchange for a stake in the business
6
Q
Crowd funding
A
Similar to peer to peer funding as banks are excluded and individuals can lend money to others with out previous knowledge of them
7
Q
Other businesses
A
One business may help finance another business
8
Q
Methods of finance
A
