Hoofdstuk 2 Business Finance Flashcards
(41 cards)
Internal financing
Money that comes from inside the company, like profit or money made from selling things.
External financing
Money that comes from outside the company, like banks or investors.
Downsides of internal financing
generating profit usually takes times.
Downsides of external financing
you always have to give something in return:
Examples:
Banks charge interest on loans.
Investors may want part of your company.
Lender
Is someone (group/bank) who gives money expecting to be paid back.
Borrower
Is someone who takes money and promises to pay it back.
Secured loan
A loan where you promise something valuable (like a car or house) as collateral if you don’t pay back, the lender can take the item.
IPO (Initial Public Offering)
When a company sells its shares to the public for the first time. THis means it becomes a public company and can raise a lot of money.
Government grant
Free money given by the government to help people or companies do something good for society.
Examples:
- for green/environmental projects
- For scientific research (you usually don’t have to pay it back).
Overdraft
When the bank allows you to spend more money than you have in your account, usually with extra fees or interest.
Venture Capital
Money from investors who put funds into new or risky businesses with big growth potential.
In return, they usually want a share of the company.
Lease
You use something (like a car) for a set time, then give it back.
Hire Purchase
You pay in parts (installments), and after the last payment, you own it.
besloten vennootschap
a private company
beursgenoteerd bedrijf
a public company
(aandelen) uitgeven
to issue (shares)
intrest / rente
an interest
waarborg
a security
overheidspremie / -toelage
a government grant
aanbetaling
a deposit
schijven/ termijnen
instalments
handleskrediet
trade credit
leverancier
a supplier
aandeelhouder
a shareholder
