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  • Business Finance
    • Sources of finance in a  limited company
      • External
        • Short term
          • creditors
          • factoring
          • bank overdraft
          • bank loan
        • long term
          • Share issue
          • long term loans
          • grants
          • Debentures
        • Medium term
          • Leasing
          • hire purchases
          • medium term loans
      • Internal
        • sales of assets
        • Retained Profit
        • reduction in working capital
        • internal money raised from the business's own assets or from profits in the business
        • does not have direct cost, does not increase liabilities or debts of the business,no risk of lost control by the original owner as no shares are sold
    • Key points
      • liquidity
      • revenue expenditure
      • liquidation
      • Capital expenditure
      • overdraft
        • bank agrees to a business borrowing up to an agreed limits as and when required
      • Working capital
      • factoring
        • selling of claims over debtors to a debt factor in exchange for immediate liquidity- only a proportion of a value will be received as cash
      • start up capital
      • leasing
        • Obtaining the use of assets and paying rental or leasing charge over a fixed period, this avoids the business with raising long term capital to buy assets
      • hire purchases
        • an assets sold to a company that agrees to pay fixed repayments over an agreed time period
      • long term loans
        • loans that do not have to be repaid for at least one year
      • equity finance
        • permanent finance raised by companies through sale of shares
      • long term bonds and debentures
        • bonds issued by companies to raise debt finance, often with a fixed rate of interest
  • rights issued
    • Key points
      • liquidity
      • revenue expenditure
      • liquidation
      • Capital expenditure
      • overdraft
        • bank agrees to a business borrowing up to an agreed limits as and when required
      • Working capital
      • factoring
        • selling of claims over debtors to a debt factor in exchange for immediate liquidity- only a proportion of a value will be received as cash
      • start up capital
      • leasing
        • Obtaining the use of assets and paying rental or leasing charge over a fixed period, this avoids the business with raising long term capital to buy assets
      • hire purchases
        • an assets sold to a company that agrees to pay fixed repayments over an agreed time period
      • long term loans
        • loans that do not have to be repaid for at least one year
      • equity finance
        • permanent finance raised by companies through sale of shares
      • long term bonds and debentures
        • bonds issued by companies to raise debt finance, often with a fixed rate of interest
  • venture capital
    • business plan
      • detailed document giving evidence about new or existing business and that aims to convince external lenders to extend finance to the business
        • business plan
        • risk capital invested in business startups or expanding small businesses that have good profit potentials but do not find it easy to gain finance from other sources
          • venture capital
          • external money raised from sources outside the business
            • External
              • Short term
                • creditors
                • factoring
                • bank overdraft
                • bank loan
              • long term
                • Share issue
                • long term loans
                • grants
                • Debentures
              • Medium term
                • Leasing
                • hire purchases
                • medium term loans

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