Sources of Business Finance

Flashcards covering key concepts related to sources of business finance, including definitions of financial terms and concepts discussed in the lecture.

Start-up capital is the finance needed by a new business to pay for essential __ before it can begin trading.

non-current (fixed) and current assets

Working capital is the finance needed by a business to pay its __ costs.

day-to-day

Capital expenditure refers to money spent on __ which will last for more than one year.

non-current (fixed) assets

Revenue expenditure is money spent on __ which do not involve the purchase of a long-term asset.

day-to-day expenses

Internal finance is obtained from __ the business itself.

within

External finance is obtained from __ of and separate from the business.

sources outside

Debt factoring involves a business selling its unpaid customer invoices to a third-party finance company at a __ for immediate cash.

discount

Crowdfunding is 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

Short-term finance provides the working capital needed by businesses for __ operations.

day-to-day

An overdraft is arranged by a bank, giving a business the right to __ its bank account.

‘overdraw’