Sources of Finance Flashcards
Leasing
Allowed for two types of businesses but allows large amounts of finance to be raised
Friends & Family
Where a supplier allows you to purchase goods and pay for them later (usually 30 days).
Share Capital
May allow you to borrow money that may be refused elsewhere. (could put on strains in relationships)
Trade Credit
A flexible source of finance (mainly used to ease short-term cash flow problems).
Overdraft
The amount borrowed that can be spread over a period to match businesses needs
Bank loan
An amount of money money borrowed but will have to be payed back with interest
Credit card
A sum of money, (usually awarded by the council or government for a specific project or purpose)
Credit card
A sum of money, (usually awarded by the council or government for a specific project or purpose)
Grants
Finance obtained from people or businesses
Venture Capital
Where a business sells things (such as factories and vehicles) that it no longer really needs
Sales of Assets
Where no interest in need to pay and can be obtained easily however can decrease the number of shareholders in a business
Retained Profit
Where a business loses ownership of the item but still retains it use in return for regular .
Sale and leaseback
Where a business sells a debt to someone else and pays a fee for that person to collect it on their behalf
Factoring
Usually lasts around 25 years and can only be used to buy a specific asset.
Owners Savings
Personal saving for future investments ect
