External Finance

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Authorised Share Capital
the maximum amount that can be legally raised
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Bank Overdraft
an agreement between a business and a bank that means a business can spend more money that it has in its account (going "overdrawn"). The overdraft limit is agreed and interest is only charged when the business goes overdrawn.
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Capital Gain
the profit made from selling a share for more than it was bought
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Crowd Funding
where large number of individuals invest in a business to project on the internet, avoiding the use of a bank.
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Debenture
a long-term loan to a business
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Equities
another name for an ordinary share
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External Finance
money raised form outside the business
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Issued Share Capital
amount of current share capital arising from the sale of shares
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Lease
a contract ot acquire the use of resources such as property or equipment
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Peer-to-peer Lending (P2PL)
where individuals lend to tier individuals without prior knowledge of them, on the internet
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Permanent Capital
share capital that is never repaid by the company.
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Secured Loans
a loan where the lender requires security, such a property, to provide protection in case the borrower defaults
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Share Capital
money introduced into the business though the sale of shares
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Unsecured Loans
where the lender has no protection if the borrower fails to repay the money owned
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Venture Capitalism
providers of funds for small or medium sized companies that may be considered too risky for other investors
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Other cards in this set

Card 2

Front

an agreement between a business and a bank that means a business can spend more money that it has in its account (going "overdrawn"). The overdraft limit is agreed and interest is only charged when the business goes overdrawn.

Back

Bank Overdraft

Card 3

Front

the profit made from selling a share for more than it was bought

Back

Preview of the back of card 3

Card 4

Front

where large number of individuals invest in a business to project on the internet, avoiding the use of a bank.

Back

Preview of the back of card 4

Card 5

Front

a long-term loan to a business

Back

Preview of the back of card 5
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