Business- Finance Methods

6. It is an external source of finance, the bank allows the business to draw more money from their bank account than they actually have in it
7. An external source of finance, an item is bought on finance, repayments are made each month until the final payment when the item becomes the property of the firm
8. When a venture capitalists invest in medium small, risky business e.g. new business start-ups of a reasonable
10. They invest is very small risky business
11. An amount of money is borrowed from the bank to buy things, then it is repaid over a set period of time with an interest rate
13. The money kept in the business by the owners after taxes, it can't be an option of finance for startup companies
14. It is an internal source of finance, the money put into the business by the owner, which doesn't require to pay any interest
15. In other word it is an issue of shares, the share is sold and the money from it can be used by the company

1. Items owned by the business are sold and the money made is used to finance the business
2. A business buys items from the suppliers in a "buy now, pay later" formulae, it can only be used if you have a good reputation
3. The money given to the business by the government for producing certain types of designated product, the business doesn't have to repay the subsidy
4. A long term loan issued by the business itself to private purchasers because they are trusted, it might lead to a situation in which the business will have a higher debt with respect to its assets, which increases the risk
5. Money given to a business by the government, it is used to help in financing new projects(especially those which create new jobs)
9. Used to help obtain new equipment, ex. cars. The business does not own the item, it rents it, it os good when the technology is changing fast
12. It is an external source of finance, the company sells a debt it is owed to a debt factoring company, which pay the business a smaller sum than they were owed.