sources of finance

?
  • Created by: brodda221
  • Created on: 13-03-23 09:29
what is owners savings
the money saved up by the owner
1 of 22
what the ads and disadvantages of owners savings
+
no need to repay/ no interest
-
mat lead owner to not have any savings for personal use
2 of 22
what is retained profit
saved profit from previous year
3 of 22
what the ads and disadvantages of owners savings
+
no need to repay/ no interest
-
not available to first year businesses and failing businesses
4 of 22
what is trade credit
buy now pay later (suppliers)
5 of 22
what the ads and disadvantages of trade credit
+
improves cash flow and no interest
-
discounts for early payments will not be available
6 of 22
what is hire purchase
renting for machinery
7 of 22
what the ads and disadvantages of hire purchase
+
payment are spread over a longer time period and can use equipment that you would not be able to afford in a one time purchase
-
additional charges make it expensive and only used on equipment and machinery
8 of 22
what is a credit card
it is the opportunity to borrow funds and pay later
9 of 22
what the ads and disadvantages of credit card
+
if repaid within the month there is no interest and money can be claimed back if there is a problem with the purchase
-
interest is charged if not repaid in time and can lead to spiralling debt
10 of 22
what is overdraft
it is when you spend more money than you actually have in the bank account
11 of 22
what the ads and disadvantages of an overdraft
+
can help with short-term cash problems
-
high intertest rates
12 of 22
what is a loan
money borrowed from the bank that has to be repaid
13 of 22
what the ads and disadvantages of a loan
+
repayments are spread of a period of time and can help with cashflow management
-
expensive and you need security to be able to get a loan
14 of 22
what is a mortgage
long term loan for a property
15 of 22
what the ads and disadvantages of a mortgage
+
spread over a long period of time
-
if you cant pay the bank will take it away
16 of 22
what is venture capitalist
someone who invests money for a % of the business
17 of 22
what the ads and disadvantages of a venture capitalist
+
you gain money, financial advice and business connections
-
reduces control of the business
18 of 22
what is share issue
selling shares
19 of 22
what the ads and disadvantages of a loan
+
no interest
-
lose control of the company
20 of 22
what is crowdfunding
raising money buy people to help small businesses
21 of 22
what the ads and disadvantages of crowdfunding
+
you promote your business and help finance it
-
business intention will be made public so people will steal their idea
22 of 22

Other cards in this set

Card 2

Front

what the ads and disadvantages of owners savings

Back

+
no need to repay/ no interest
-
mat lead owner to not have any savings for personal use

Card 3

Front

what is retained profit

Back

Preview of the front of card 3

Card 4

Front

what the ads and disadvantages of owners savings

Back

Preview of the front of card 4

Card 5

Front

what is trade credit

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business resources:

Unit 5
See all Business resources »See all sources of finance resources »