Sources Of Finance Flashcards
Bank overdraft
An agreement with the bank to overspend on an account
Bank loan
A source of finance offered by a bank which must be paid back with interest over a set term
Grant
A grant is a payment made that does not have to be paid back
Mortgage
A loan on a property
Share issue
When a limited company offers equity to its investors
Debt factoring
When a business looks to sell off their debt with the aim of gaining short term finance
Sale of assests
When a business sells something expensive to raise funds
Crowdfunding
Raising funding for a project by gathering sums of money from a large group of people
Debentures
A medium to short term loan used by large companies to borrow money at a fixed rate rate of interest
Retained profit
Profit held back in the business for investment rather than being distributed in dividends
Venture capital
Finance that investors provide to startup companies
