Sources of finance definitions Flashcards
what is overdraft
more money taken from an account than is in it
what is trade credit
buy now pay later
what is grant
money given by the government
what is a bank loan
money borrowed from the bank and payed back in instalments
what is a commercial mortgage
money borrowed to buy property or land
what is dept factoring
unpaid invoice is given to a dept factor to chase up for a small cost
what is retained profits
made previously for reinvestment
what is selling assets
selling unwanted assets to raise finance
what is leasing
paying a fee to rent the use of equipment etc
what is hire purchasing
paying the cost in monthly instalments
what is crowd funding
appealing for public funding
what is new equity
LC sell new shares to investors for part ownership of the business
what are debentures
loans from companies to plcs with fixed interest and repaid at a later date
what is venture capital
investor provides finance to a venture that seems risky
