front 1 Debt Finance | back 1 Borrowing money from a bank which must be repaid with interest |
front 2 Equity Finance | back 2 Selling shares in the business to raise finance rather than borrowing |
front 3 Internal Sources of Finance | back 3 Finance sourced from inside the business, for example, owner’s funds, sale of assets and retained profit |
front 4 Loan | back 4 Bank lends a fixed amount for an agreed time period, which must be repaid with interest |
front 5 Long term finance | back 5 Finance required for periods usually longer than one year |
front 6 Micro Finance | back 6 Lending small amounts of finance small business people to those who can’t access finance from another source |
front 7 Overdraft | back 7 Banks allow businesses to take additional money out of their account up to a certain limit |
front 8 Owners savings | back 8 Using owners’ own savings to finance the business |
front 9 Sale of assets | back 9 Selling equipment /machinery/inventory to raise finance for a business |
front 10 Short-term Finance | back 10 Finance required for short periods usually less than one year |
front 11 Start Up Capital | back 11 Money required to set up a business and keep the business operating until the business breaks even |
front 12 Trade Credit | back 12 Delaying payment to suppliers for an agreed time period |
front 13 Cash flow | back 13 Cash flow in and out of the business over a period of time |
front 14 Cash flow forecast | back 14 Estimate of future cash inflows and outflows usually calculated month by month to ensure there is enough cash to pay short-term debts |
front 15 Cash Inflow | back 15 Cash going into a business |
front 16 Cash outflow | back 16 Cash going out of the business |
front 17 Crowd Funding | back 17 Raising finance by raising small amounts of money from many people, usually via the Internet |
front 18 Net cash flow | back 18 Cash inflows - cash outflows |
front 19 Trade receivables | back 19 Sales made by a business, but still awaiting payment (current asset) |
front 20 Working Capital | back 20 Capital available to a business day to day to pay short-term debts (Current Assets – current liabilities) |
front 21 Profit | back 21 Sales revenue minus total costs of making a product/service |
front 22 Retained Profit | back 22 Reinvesting profits back into the business |
front 23 Account Payable | back 23 Unpaid bills or payment owed by a business which must be paid (current liability) |
front 24 Assets | back 24 Items of value owned by the business like buildings, vehicles, equipment, machinery |
front 25 Capital Employed | back 25 Money invested in a business (buildings, machinery) |
front 26 Current Assets | back 26 Items of value that the business won’t keep for longer than a year, like cash or inventory |
front 27 Liabilities | back 27 Debts owed by the business, for example, bank loans |
front 28 Non current assets | back 28 Items of value the business will keep longer than one year, for example land, buildings, equipment and vehicles |
front 29 Non-current liabilities | back 29 Debts which will last longer than one year, like a long-term loan for new production machinery |