BUSINESS UNIT 3

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WHAT ARE SOME FORMS OF
BORROWING
OVERDRAFT
CREDIT CARD
PAYDAY LOANS
PERSONAL LOAN
HIER PURCHASE
1 of 6
WHAT IS AN OVERDRAFT?
IT IS A TYPE OF SHORT TERM BORROWING OFFERED WITH CURRENT ACCOUNTS.

IT IS A FLEXIBLE WAY TO BORROW MONEY IN SHORT TERM
2 of 6
ADVANTAGES & DISADVANTAGES OF AN OVERDRAFTS
ADVANTAGES:
FLEXIBLE
QUICK TO SETUP
NO EARLY REPAYMENT FEE

DISADVANTAGES:
COULD BE CHARGED FOR GOING OVER AGREED LIMIT
BANK COULD ASK FOR MONEY AT ANYTIME
CAN ONLY GET AN OVERDRAFT FROM A
3 of 6
WHAT IS A PERSONAL LOAN?
A PERSONAL LOAN IS MEDIUM TO LONG TERM BORROWING.

CUSTOMERS APPLY FOR THE LOAN BY EXPLAINING WHAT THE LOAN IS FOR, THE BANK THEN DECIDES WHETHER TO ACCEPT THEM OR NOT
4 of 6
ADVANTAGES/DRAWBACKS
OF PERSONAL LOAN
FIXED INTEREST RATES HELPS CREATES STABILITY
FIXED REPAYMENTS
5 of 6
WHAT ARE THE PURPOSES OF ACCOUNTING
RECORD TRANSACTIONS
MANAGEMENT OF BUSINESS
COMPLIANCE
MEASURING PERFORMANCE
FORM OF CONTROL
6 of 6

Other cards in this set

Card 2

Front

IT IS A TYPE OF SHORT TERM BORROWING OFFERED WITH CURRENT ACCOUNTS.

IT IS A FLEXIBLE WAY TO BORROW MONEY IN SHORT TERM

Back

WHAT IS AN OVERDRAFT?

Card 3

Front

ADVANTAGES:
FLEXIBLE
QUICK TO SETUP
NO EARLY REPAYMENT FEE

DISADVANTAGES:
COULD BE CHARGED FOR GOING OVER AGREED LIMIT
BANK COULD ASK FOR MONEY AT ANYTIME
CAN ONLY GET AN OVERDRAFT FROM A

Back

Preview of the back of card 3

Card 4

Front

A PERSONAL LOAN IS MEDIUM TO LONG TERM BORROWING.

CUSTOMERS APPLY FOR THE LOAN BY EXPLAINING WHAT THE LOAN IS FOR, THE BANK THEN DECIDES WHETHER TO ACCEPT THEM OR NOT

Back

Preview of the back of card 4

Card 5

Front

FIXED INTEREST RATES HELPS CREATES STABILITY
FIXED REPAYMENTS

Back

Preview of the back of card 5
View more cards

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