Unit 23 Business Finance

4. Property, machinery and other assets owned by a business which will not be turned into cash within one year.
5. Assets that are owned by a business and converted into cash within one year.
7. A loan that is repayable with interest over more than one year.
11. Short-term debts that must be paid within one year.
14. Provided by investors who are prepared to take risks by offering finance to start-up companies or small companies that have good growth potential.
15. A sum of money obtained from a bank which must be repaid and on which interest is payable.
17. The capital available to a business in the short term to pay for day-to-day expenses.
18. Allows a business to buy a non-current asset over a long period of time with monthly payments which include an interest charge.
19. When a business is allowed to pay a supplier some time after materials have been purchased.

1. The finance needed by a new business to pay for essential non-current assets and current assets before it can begin trading.
2. Finance obtained from within the business itself or from owners, if it is an unincorporated business.
3. Provides capital which can be repaid over a period of time longer than one year.
6. Provides the working capital needed by businesses for day-to-day operations and is repaid within one year.
8. A short-term source of flexible finance which allow more money to be drawn out of the bank account than there is money in the account.
9. Money or capital needed to pay for expenditure.
10. Allows a business to pay a regular leasing charge to use the asset without buying it.
12. Funding a business venture by raising money from a large number of people who each contribute a relatively small amount, typically via the internet.
13. Obtained from sources outside of and separate from the business.
16. A sum of money awarded to a business by the government which does not have to be paid back.