External sources;Part 1 Flashcards
1
Q
External sources;Definition
A
Outside the business,from other people putting money in
2
Q
External sources;Bank loan definition
A
Borrowing money,repaid with interest
3
Q
External sources;Bank loan Advantages
A
- Installments
- Easier cash flow
- No shares
4
Q
External sources;Bank loan Disadvantages
A
- Back up the loan with assets
- Pay interest
5
Q
External sources;Overdraft definition
A
Pre arranged amount of money a business can use when it has nothing left
6
Q
External sources;Overdraft advantages
A
- Short term funding
- Flexibility
- Covers day to day
7
Q
External sources;Overdraft Disadvantages
A
- Interest charged if overdrawn
- Ended at any time
