long term sources of finance

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8 Terms

1
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long term

sources of finance are usually repaid over a longer period of time

would be used to finance a new business or to expand a business

2
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personal savings

covering short-term expenses that can be repaid quickly

3
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venture capital

raising capital from investors to fund a new business idea

4
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share capital

raising large amounts of money by selling equity in a limited company

5
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loan

covering large expenses associated with starting or expanding a business which will be repaid over a number of years

6
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retained profit

reinvesting in a successful business to ensure that it keeps growing

7
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crowdfunding

raising money from a large number of people in return for some sort of reward

8
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selling shares

a share is a part of the business in a limited company that is sold to investors

they are then shareholders in the business and are entilted to a share of any profits generated