accessible from banks and credit unions. Borrowers make fixed repayments (which cover repayment of the loan plus interest) over an agreed time period, between o
Sale and Leaseback
selling an asset, e.g. premises to an investor and leasing it back from the new owner
Hire Purchase
: the purchaser pays an initial deposit and a finance company pays the balance to the seller. Ownership is transferred to the buyer when the last payment is mad
Accrued Expense
business has the use of certain expenses for up to two months before payment is required, e.g. electricity, phone, broadband
Credit Card
allows the card holder to buy now and pay later
Mortgage
specifically used to purchase property. Repaid over 20 – 30 years
Crowdfunding
seeking small amounts of money from a large number of people
cash
using cash reserves to pay for day-to-day business expenditure
Retained Profit
portion of the annual profits reinvested in the business
Invoice Discounting
allows the business to borrow money against its outstanding sales invoice.
Bank overdraft
account holder can withdraw more money from their current account than they have in it. Must be arranged in advance
Trade Creditor
suppliers may provide up to 60 days credit
Share Capital
money invested into a business by its owners (shareholders)
Venture Capital
venture capitalists invest in new or high risk businesses
Grants
money provided by the government, local authority or EU
Leasing
renting an asset over a number of years.
Debentures
long-term loan with a fixed interest rate and specific repayment date
Factoring
selling money owed by debtors to a factoring company to get immediate payment
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