Sources Of Finance Flashcards
1
Q
Name some sources of finance ?
A
Retained profit
Overdraft
Crowdfunding
Loan
Trade credit
2
Q
What is crowdfunding ?
A
Money is raised by sponsors usually by advertising a business idea
3
Q
Advantages of crowdfunding ?
A
No security needed and its can raise a lot of money
4
Q
What are the disadvantages of crowdfunding ?
A
Interest will need to be payed and it takes time
5
Q
Advantages of a loan ?
A
Repayment is spread over time
6
Q
Disadvantage of loan ?
A
Interest has to be payed and the businesses assets are at risk
7
Q
What is overdraft ?
A
An arrangement with a bank to spend more money on it than there is
