Sources of Finance

Down

• 2. When suppliers give time to pay for supplies and stoke. This is usually within 30 days. (5, 6)
• 3. The bank allows a business to go 'overdrawn' up to a certain amount. The business only pays interest on the amount overdrawn. The interest paid is usually higher than a bank loan. It is usually used to pay small bills and expenses (9)
• 4. An amount of money is borrowed from the bank and then repaid with interest over a set period of time. (4, 4)
• 5. They invest in small, risky businesses e.g. a new business or existing businesses which need investment (7, 6)
• 8. Profit kept after all expenses and dividends are paid out. The profit can then be put back into the business for expansion of the business (6, 6)
• 9. When the owner uses his/her savings to invest in the business (6, 7)
• 10. When a business sells off their fixed and current assets which is no longer needed for the business to make a profit (5, 2, 6)