Methods of payment for a business Flashcards
1
Q
What is a grant?
A
Its money given by government, does not have to be paid back.
2
Q
What is leasing?
A
When you rent equipment instead of purchasing it. Pay money each month.
3
Q
What is hire purchase?
A
Same as leasing, except at the end of the payments you own the product. Have to pay interest.
4
Q
What is trade credit?
A
When you can purchase supplies now and you can pay later.
5
Q
What is a mortgage?
A
A large amount of money used to buy property or land.
6
Q
What is venture capital?
A
When you give up a large stake in your business in exchange for an investment.
