Zusammenfassung der Ressource
Sources of Finance
- Time periods for finance
- short term; 1-3 years
- medium term; 3-10 years
- long terms ; 10 or more years
- Internal sources of finance
- Divestment - selling off a part of the business
- Personal savings - savings collected previously
- Reduction in current assests - eg reducing the amount of stock or reducing amount
kept in the bank
- External sources of finance
- Short term
- * trade credit - getting things in
advance to paying for them
- *overdrafts - owing money to the bank
- loan
- Medium term
- Leasing -renting something for a monthly fee
- hire purchase - paying monthly for
something and then owning it at the
end eg a phone contract
- loan
- Long term
- loan
- crowdfunding - getting investors from the
general public
- morgages
- share capital - inviting people to buy shares
- venture capital - asking specific investors /
organisations to buy shares
- Sale of fixed assests means ....
- selling something of value(e.g car or building).
Fixed assets means its an item usually kept
for a long time.
- Retained profit means ...
- money made and then kept
- Factoring means ...
- Selling off a debt to a company.
The company will pay out to the
person who is owed and then will
go and attempt to get as much
from the person in debt.
- Sale and lease back means...
- Selling off an asset for money and then paying monthly to use the asset
from the company. This means the business can have money instantly
and use of the asset.