sources of finance Flashcards
1
Q
what are the 7 sources of finance
A
retained profits
overdrafts
debt factoring
bank loans
venture capital
share capital
crowdfunding
2
Q
what are retained profits
A
internal source of finance
profits not spent by the business ,
3
Q
what are overdrafts
A
external source of finance
when a business is allowed to spen more than it holds in its current bank acount upto an agreed limit.
4
Q
what is debt factoring
A
external source of finance
process of selling debt to a finanical institution
5
Q
whats venture capital
A
investment from an established business into another business for a % of equity
6
Q
what is share capital
A
selling shares / % of the business for ps
