Sources Of Finance. Flashcards
What is overdraft?
The facility to overspend on a current account up to an agreed sum.
What is Trade Credit?
Paying suppliers a period of time after the goods or services have been received.
What is Personal Savings?
When an entrepreneur invests into their own business, with their own money.
What is venture capitalist?
An investment from an established business into another business in return for a percentage equity in the business. Has association with high risk businesses.
What is share capital?
Finance raised from the sale of shares.
What is a loan?
A set amount of money provided for a specific purpose to be repaid, with interest. Could be secured by taking assets away. Generally loaned by a bank.
What is retained profit?
Kept inside the business from previous profits made. Helps with future activities and no repayments have to be made because its the businesses money.
What is crowdfunding?
Crowdfunding is raising finance from a large number of people, each investing often small amounts of money.
