sources of finance

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Across
  1. 2. A long-term loan issued by the business itself to private purchasers Big companies because they are trusted
  2. 5. Venture capitalists invest in medium-small, risky business e.g. new business start-ups of a reasonable size
  3. 7. Money kept in the business by the owners after taxes Known as retained profit on the balance sheet. Good if you have regular relatively large stream of profit
  4. 8. An amount of money is borrowed from the bank to buy machinery, property etc., then repaid (with interest) over a set period of time
  5. 11. Business angels invest in very small risky businesses
  6. 13. An item is bought on finance, repayments are made each month until the final payment when the item becomes the property of the firm
  7. 14. Money put into the business by the owner Sole-traders, partnership,Good for start-up if banks see you as too risky
  8. 15. The company sells a debt it is owed to a debt factoring company who pay the business a smaller sum than they were owed
Down
  1. 1. Items are bought from suppliers on a ‘buy now pay later’ basis.Can only be used if you have a good reputation
  2. 3. Money given to the business by the government.
  3. 4. A share in the business is sold to an individual or another business.
  4. 6. Used to help obtain new equipment eg carsThe business rents the item from its ownerGood if technology is changing fast
  5. 9. The bank allows the business to draw more money from their bank account than they actually have in it
  6. 10. Items owned by the business are sold and the money made used to finance the business; useful if relocating, used in liquidity crisis.
  7. 12. Money to the business by the government for producing certain types of designated product.