Sources of Finance- Short Term

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  • Created by: ayaaaa
  • Created on: 06-12-16 06:02
What is leasing?
renting or hiring equipment or property
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What is hire purchase?
buying specific goods with a loan, often provided by a finance house
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What is short term finance?
money borrowed for one year or less
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What is an example of short term finance?
bank overdrafts
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What is an overdraft?
the ability to withdraw more money from a bank account than you actually have
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What is an advantage of an overdraft?
its simple and flexible
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What is a disadvantage of a bank loan?
Interest has to be paid on the amount borrowed
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What is sales of assets?
selling the businesses assets to raise finance
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What is an advantage of credit cards?
convenient and flexible
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Why would a business want to expand ?
to develop new products
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What is working capital?
money that can be used to meet wages and day to day running
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Other cards in this set

Card 2

Front

What is hire purchase?

Back

buying specific goods with a loan, often provided by a finance house

Card 3

Front

What is short term finance?

Back

Preview of the front of card 3

Card 4

Front

What is an example of short term finance?

Back

Preview of the front of card 4

Card 5

Front

What is an overdraft?

Back

Preview of the front of card 5
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