Types of Finance and the differences between them Flashcards
9.1 The principles of finance (2 cards)
1
Q
What are loans?
A
a type of finance lent to individuals or businesses by banks and financiers. A loan will have an interest rate applied to it, whihc depends on a range of factors including the amount being lent. There is a contractual agreement for a repament schedule, which includes penalites and charges if the repayments are not made, or if the loan is paid back early
2
Q
What are Grants/Bursaries?
A
Grant schemes and bursaries are financial support systems offered by an individual, organisation of the government for a specific benefit. THey usually don’t require repayment. They have specific application requirements, criteria and processes, depending on who is giving the grant and its purpose.
