Getting Finance

What is a source of finance?

• A method of earning incomes
• The different ways a business can fund themselves

What does internal mean?

• A source from within the business
• A source from outside the business

What does external mean?

• A source from within the business
• A source from outside the business

Which is an example of an internal source of finance?

• Owners' Funds
• Hire Purchase
• Leasing
• Trade credit

What is an advantage of a bank loan?

• There will be little or no interest
• You can pay in smaller installments
• They are quick and easy to arrange
• You don't have to pay it back

What is an advantage of owners' funds?

• There will be little or no interest
• You can pay in smaller installments
• They take a long time to arrange
• You don't have to pay it back

What is an advantage of friends & family loan?

• There will be little or no interest
• You can pay in smaller installments
• They take a long time to arrange
• You don't have to pay it back

What is a disadvantage of a bank loan?

• It means you have no savings
• It can lead to personal conflicts
• It can take a long time to arrange
• They can be recalled immediately

What is the most likely source of finance for buying a new IT system?

• Mortgage

• Factoring

• A bank loan

What is the name for a large amount of money borrowed from a bank to pay for property/premises?

• Overdraft
• Loan
• Mortgage
• Debt