sources of finance

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  • Created by: S0099087
  • Created on: 05-05-21 14:30
what is owners capital?
further investment of the sole traders or partners own capital(savings)
1 of 11
what is a bank loan
a business or individual borrows a fixed amount for a fixed period of time for a specific purpose

its an external source
2 of 11
sale of assets
a business sells off its non-current assets to which it is no longer using
3 of 11
overdraft
a bank allows a business to overspend on its current account up to an agreed limit

its an external source
4 of 11
venture capital
money invested in a business by a professional investor

its an external source
5 of 11
debt factoring
a business sells its debts which have not been collected to another company

its an external source
6 of 11
trade credit
a business to business agreement in which a customer can purchase goods on an account without paying up front

its an external source
7 of 11
leasing assets
a business pays monthly for the use of an asset it will never own

its an external source
8 of 11
hire purchase
similar to leasing however, the asset belongs to the business that hires it

its an external source
9 of 11
reinvested profits
profit that is reinvested from previous years' success
10 of 11
share issue or new partners
money given to a company by private individuals in exchange for a share certificate which gives them part ownership

its an external source
11 of 11

Other cards in this set

Card 2

Front

what is a bank loan

Back

a business or individual borrows a fixed amount for a fixed period of time for a specific purpose

its an external source

Card 3

Front

sale of assets

Back

Preview of the front of card 3

Card 4

Front

overdraft

Back

Preview of the front of card 4

Card 5

Front

venture capital

Back

Preview of the front of card 5
View more cards

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