Business Finance

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Bank Loan (S)

Finance provided by the bank that will be paid back over a set period im installments with intrest. (Starting up)

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Loan from family or friends (S)

Finance provided by friends or family where the intrest rate and repayment period is agreed with them.

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Overdraft (S)

A flexible arrangement that allows a business to spend more money than it has in their bank account as and when it needs the finance.

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Mortgage (S)

Long-term loan for pruchasing a building.

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Trade Credit (S)

Suppliers who allows debts for goods and services to be paid 1-3months (Credit Period) after delievery.

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Grant (S)

Money given to be a business by a government or charity.

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Retained Profits (L)

Internal finance. Profit thats not being given to shareholders it's being kept by the business for expansion or improvements.

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Selling unwanted assets (L)

Internal finance. Turns the business' property and assets into cash only when they dont need them.

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Sale and leaseback (L)

Selling assets when still needed and payed monthly to use.

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New share issue (L)

LTD's and PLC's can raise capital by selling futher shares

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Loan (L)

Borrowing from a bank or another financial institution.

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