Finance

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  • Created by: fredbryce
  • Created on: 18-09-16 13:10

Raising finance

  • grants
  • lease
  • trade credit
  • owners capital
  • share capital
  • hire purchase
  • factoring
  • sales of assets
  • overdraft
  • bant loan
  • mortgage
  • retained profit
  • cash in the bank
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long term finance

Mortgages -> these are often used to buy buldings which are used as security for the finance

Grants -> free money from the government

Share Capital -> Money gained from people who buy money in shares

Retained profit -> profit that is kept in the business

Bonds -> fixed rate of interest at an agreed repayment date

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Short term finance

Trade credit -> Finance received from suppliers in goods that you pay for a month later

Loans -> a sum of money borrowed from the bank

Leasing -> Allows the business to have expensive assets without paying a large sum of money but they never have ownership over it

Overdraft -> A business takes out more money from its bank from the bank and therefore becomes in debt. Is only replayed over the time that they have the overdraft

Hire purchase -> A business buys a piece of equipment and pays for it over a long period of time with monthly instalments 

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Internal and external sources of finance

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Internal and external sources of finance

Internal ->

  • Sales of assets
  • retained profit
  • owners capital

External ->

  • leasing
  • loans
  • trade credit
  • overdraft
  • share capital
  • grants
  • venture capital
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Comments

adeeqa

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that's so useful, thanks x

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