Finance
Why might finance be important for a business?
It allows them to realise their goals and increase their production now, with the hope to profit in the future!
What is an example of an internal source of finance?
Retained profits, savings, selling assets
What is an example of an external source of finance?
A short term for of finance where the business can pay for inventory in 30/60/90 days.
Trade Payables
How long is short term finance and give an example
It is paid back within a year, trade payables
How long is long term finance and give an example
Bank loan (mortgage)
the practice of funding a project or venture by raising money from a large number of people who each contribute a relatively small amount, typically via the internet.
Crowdfunding
An investor that provides capital (cash) to companies with high growth potential in exchange for an equity stake.
Venture Capitalist
Money a company raises by issuing shares of their business to the public.
Public Share Capital
Money a company raises by issuing a part of their business to friends and family.
Private Share Capital
Agreement with a bank where a business spends more money than it has in its account
Bank Overdraft
A loan when the bank doesn't have any security if you default
Unsecured Loan