Sources of finance definitions Flashcards Preview

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Flashcards in Sources of finance definitions Deck (14)
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1
Q

what is overdraft

A

more money taken from an account than is in it

2
Q

what is trade credit

A

buy now pay later

3
Q

what is grant

A

money given by the government

4
Q

what is a bank loan

A

money borrowed from the bank and payed back in instalments

5
Q

what is a commercial mortgage

A

money borrowed to buy property or land

6
Q

what is dept factoring

A

unpaid invoice is given to a dept factor to chase up for a small cost

7
Q

what is retained profits

A

made previously for reinvestment

8
Q

what is selling assets

A

selling unwanted assets to raise finance

9
Q

what is leasing

A

paying a fee to rent the use of equipment etc

10
Q

what is hire purchasing

A

paying the cost in monthly instalments

11
Q

what is crowd funding

A

appealing for public funding

12
Q

what is new equity

A

LC sell new shares to investors for part ownership of the business

13
Q

what are debentures

A

loans from companies to plcs with fixed interest and repaid at a later date

14
Q

what is venture capital

A

investor provides finance to a venture that seems risky