Sources of finance
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11 Terms
1
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Short-Term
Trade Credit
Overdrafts
Accrued Expenses
Factoring Debts
Invoice Discounting
2
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Medium-Term
Hire Purchase
Leasing
Term Loan
3
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Long-Term
Mortgage
Retained Earning
Grants
Debentures
4
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Trade Credit
Receiving goods but not paying immediately
5
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Accrued Expenses
Delaying payments to fund something else
6
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Hire Purchase
Buying an asset by paying in instalments
7
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Leasing
Renting an asset for an agreed time
8
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Term Loan
Medium bank loan paid over 1-5 years
9
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Mortgage
A loan used to finance the purchase of a house or property.
10
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Retained Earning
Profits are retained in the business to finance future developments
11
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Debentures
long-term fixed-interest loans secured on a valuable asset
Note 
Flashcards (37)