Sources of Finance Cards

Question	Answer
Name the three internal sources of finance...	Divestment - selling off a part of the business Personal savings Reduction of current assets -e.g reducing amount of stock
What are the three time periods of finance?	short term; 1-3 years medium term ; 3-10 years long term; 10 years or more
What is mean by the sale of fixed assets?	selling something of value e.g a car. A fixed asset means it is a product that is usually kept for a long time.
What is a retained profit?	Money that is made and then kept
What is sale and lease back?	when a business sells off assets to a finance company and then rent the asset for monthly fee. This means the company can have quick money but also have use of the assets.
name 3 external sources of short term finance.	trade credit- getting things in advance to paying overdraft - owing money to the bank *loan
name 3 midterm external sources of finance.	leasing - renting something for a monthly fee hire purchase -paying monthly until paid off and then owning the product *loan
name 3 long term external sources of finance	loan crowd funding - investors from the general public mortgages share capital - inviting people to buy shares venture capital - asking specific investors/ organisations to buy shares

Resource summary

	Created by Tamara Lancaster over 7 years ago