external finances Flashcards
1
Q
What is external finance?
A
Investments for the business that is obtained from banks, investors and lenders
2
Q
What are 12 examples of external finance?
A
-banks
-share capital
-venture capital
-grants
-overdraft
-leasing
-peer to peer funding
-business angels
-family and friends
-loans
-trade credit
-crowd funding
3
Q
What is share and venture capital?
A
Share- when a business issues more shares onto stock market
Venture- when people invests large sums into the business in return for shares
4
Q
What is peer to peer funding?
A
Small amounts of money from different lenders provide a loan to a borrower
5
Q
What is crowd funding?
A
Where a large number of people fund a project over the internet making small investments
3 ways- lend, invest, donate
