Business- sources/methods of external finance

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14 Terms

1

source- Business Angels

Individuals invest in return for percentage of company

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2

s-family and friends

Where a business borrows money from family or friends

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3

s-peer to peer lending

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4

s-banks

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5

s- other businesses

Other business may invest in the business in return of percentage of shares

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6

Method of finance- Crowdfunding

raising money for a project or venture by obtaining many small amounts of money from many people

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7

M-Loans

amounts of money borrowed which will accumulate interest

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8

M- Overdrafts

allow a business to spend in excess of the amount in its bank account, up to a predetermined limit.

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9

M- Leasing

Renting a product while ownership title remains with the lease grantor

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10

M- Trade credit

the practice of buying goods and services now and paying for them later- suppliers and distributors

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11

M- Grant

a sum of money or other payment given for a particular purpose from the government

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12

M- Venture capital

money provided by large investors (experts) to finance new products and new businesses

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13

M- Debentures

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14

M- Mortgages

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