2G Sources of Finance

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5 Terms

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Sources of Finance

Equity capital, Debt capital, Grants, Overdraft facilities

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Equity Capital

Money contributed to a business by an investor in exchange for partial ownership

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Debt Capital

Money that has been lent to a business by an external source that must be paid back over time with interest

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Grants

Money provided by a government or another organisation for a particular reason

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Overdraft Facilities

Agreements between banks and businesses or individuals, that allow a bank account to be withdrawn below zero