External Sources Of Finance Flashcards
1
Q
Loans
A
Borrowing from a bank, can be short or long term
2
Q
Share capital
A
Money invested in a company by the shareholders, no need to repay, can attract experienced people
3
Q
Venture capital
A
Investment made by specialist finds to finance the business which are unable to raise finance through stock market
4
Q
Overdrafts
A
Allows a company to spend up to an agreed negative balance on its account
5
Q
Leasing
A
Paying a fixed monthly rental for a fixed period
6
Q
Trade credit
A
Amount owed to suppliers of a business
7
Q
Grants
A
Sum of money provided by the government to a business which doesn’t have to be repaid
