external sources of finance Flashcards
1
Q
external sources
A
are sources of money from outside the business from other people putting money into the business
2
Q
bank loan advantage
A
make cash flow easier
3
Q
bank loan disadvantage
A
you have to play it back with interest
4
Q
overdraft advantage
A
flexibility to review the funding
5
Q
overdraft disadvantage
A
interest charged if overdrawn can be ended by the bank at any time
6
Q
crowd funding advantage
A
it can be fast way to raise with no upfront fees
7
Q
crowd funding disadvantage
A
if you don’t meet your funding target the money is returned to the investors
