sources of finance Flashcards
what is retained profit?
a business used its own profits to pay for things
what is working capital?
the money a business needs to have a day to day basis
what is sale of assets?
a business selling its assets that are no longer required
what is a bank loan?
a borrowing fixed amount from the bank which has to be paid back with interest
what is an overdraft?
a facility to withdraw more from an account than is in the bank account
what is trade credit?
buy now pay later
what is leasing?
gaining the use of capital goods whilst paying a monthly fee e.g. computers
what is a mortgage?
a loan for the business to buy a building , monthly payments
what is sale and leaseback?
the business selling assess to a finance company and then leasing the asset back
what is share capital?
a long term method of providing funds, a business may move from being a sole trader to a limited company
what is government assistance?
governments may offer finance to a business start up scheme
