Sources of finance Flashcards
1
Q
Hire purchase
A
Paying monthly for purchased item. The item is owned by a firm after the final payment.
2
Q
Leasing
A
Paying monthly for using something. The item is rented not owned by the firm.
3
Q
Grants
A
Some charities or the government helps businesses to get started.
4
Q
Mortgage
A
A special type of loan for buying a property where a monthly repayments are spread over a number of years.
5
Q
Loan
A
Many borrowed form the bank, family or friends.
6
Q
Trade credits
A
Where suppliers deliver goods and are willing to wait for a number of days before payment.
7
Q
Share capital
A
Is the money raised from selling shares in the business.
