Old deck stuff

• Short-term needs in business finance can be used to meet the day-to-day running costs such as wages, raw materials, components, and utility bills.
• Short-term finance is money borrowed for one year or less.
• Long-term needs in business finance can be used to buy or invest in machinery, tools, vehicle, property.
• Long-term finance is money borrowed for more than one year.
• Start-up capital in business finance refers to the funds most needed when first setting up a business, which may include land, property, equipment, or other start-up costs such as research, converting premises, legal fees, website design, and marketing.
• Expansion in business finance is when the owners want to expand the business after it is established.
• Internal sources of finance are generated by the business from its own means, such as personal saving, retained profit, and selling assets.
• External sources of finance are obtained from outside the business, such as bank overdraft.
• Short-term external sources of finance are those that can be repaid within one year.
• Mortgages: Mortgages are long-term loans and the borrower must use land or property as security, meaning that if the borrower fails to make the repayments, the lender can repossess the property.
• Loan capital: A loan is a fixed agreement between a business and the bank, where the amount borrowed, with interest, must be repaid in regular instalments over a fixed period.
• Debenture: Debentures are long-term securities yielding a fixed rate of interest, issued by a company and secured against assets, and debenture holders are entitled to a fixed return, but have no voting rights.
• Share capital: The sale of shares can raise very large amounts of money, and when limited companies are formed, shares are issued to raise start-up capital.
• Trade payable: Buying resources from suppliers such as raw materials and components, and paying for them at a later date.
• Hire purchase: Businesses may use hire purchase to buy tools, equipment, vehicles and machinery.
• Venture capital: Venture capital is provided by specialist investors in the provision of funds for small-medium size businesses, and they may invest in businesses after the initial start-up.
• Crowd funding: Crowd funding is a method where a large number of individuals invest in a business venture using an online platform and therefore avoiding using a bank.
• Unsecured bank loans: This means that the bank lends money without the security of having a claim on your assets if you do not pay it back, therefore, if the business collapses, the bank might not get its money back.
• Credit cards: Credit cards are popular because they are convenient, flexible and avoid interest charges if accounts are settled within the credit period.