sources of finance

  • An overdraft facility, where a bank allows a firm to take out more money than it has in its bank account.
  • Trade credits, where suppliers deliver goods now and are willing to wait for a number of days before payment.
  • Factoring, where firms sell their invoices to a factor such as a bank. They do this for some cash right away, rather than waiting 28 days to be paid the full amount.

Long-term sources of external finance

Sources of external…


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