What is an overdraft?
An arrangement with the bank that the business can spend more money than it has in its bank account
an amount of money borrowed from a bank or other lenders
Out of the following which is the long term sources of finance?
Bank loans, Mortgage , Government grants
Overdraft, trade credit, factoring
is a mortgage= a special type of loan for buying property where monthly payments are spread over a number of years
What is a grant?
where a bank allows a firm to take out more money than in its bank account
where suppliers deliver goods now and are willing to wait for a number of days before payment
when charities or the government help a business get started
is a loan short term?
what is an external source?
found outside the business eg. creditors or banks
finance or funds found inside the business
What is factoring?
where a firm sells their invoices to a factor such as a bank
where a supplier delivers goods and are willing to wait a number of days for payment
Is external sources of finance found outside the business?
