External Finance

• overdraft


  an arrangement for a business current account holder to spend more than it has in its account
• business angel


  an individual who specialises in making investments in start up or expanding businesses
• venture capital


  funds provided by specialist investors to businesses that have significant potential for growth
• joint venture


  a contractual agreement between two or more firms to combine their financial resources and expertise to achieve a particular goal
• leasing


  when an asset is used by the business in return for regular payments
• trade credit


  an agreement made with suppliers to buy raw materials, components and stock which are paid for at a later date