Sources of finance

?
Overdraft
money taken from a current account that leaves the account holder in deficit with the bank. It is usually set up for a small charge and interest rates are charged or amounts overdrawn
1 of 14
Trade credit
Deferred payment terms offered by a seller to a buyer (usually 30-90 days)
2 of 14
Factoring
The process of selling accounts receivable to a company at a discount
3 of 14
Retained profit
The remaining profit retained by the company after sll deductions have been made, including tax, interest and dividends
4 of 14
Sale of assets
Income a business can receive from selling existing assets e.g. land, buildings
5 of 14
Bank loan
Loan for a specific purpose for which interest is paid
6 of 14
Mortgage
A long term loan secured upon a property
7 of 14
Share capital
Business finance which has no guarantee of repayment or of annual income, but which gains the holder a share of control of the business
8 of 14
Owners capital
Personal savings : finance from the personal funds of the company owner
9 of 14
Leasing
Paying for use of an item without taking ownership
10 of 14
Peer to peer funding
Where online matching platforms match individuals who want to lend (at relatively high rates of interest to individual business borrowers)
11 of 14
Crowdfunding
Obtaining external finance from many small investments usually through web based appeal
12 of 14
Grant
A sum of money provided for a specific purpose which does not have to be paid back
13 of 14
Venture capital
High risk capital invested in a combination of loans and shares, usually in a small, dynamic business
14 of 14

Other cards in this set

Card 2

Front

Deferred payment terms offered by a seller to a buyer (usually 30-90 days)

Back

Trade credit

Card 3

Front

The process of selling accounts receivable to a company at a discount

Back

Preview of the back of card 3

Card 4

Front

The remaining profit retained by the company after sll deductions have been made, including tax, interest and dividends

Back

Preview of the back of card 4

Card 5

Front

Income a business can receive from selling existing assets e.g. land, buildings

Back

Preview of the back of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Financial Planning resources »