3.1 I GCSE Sources of Finance IGCSE

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Bank overdraft

Back

Agreement with a bank where a business spends more money than it has in its account (up to an agreed limit).

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Capital

Back

Finance provided by the owners of a business.

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Crowd funding

Back

Where a large number of individuals (the crowd) invest in a business venture using an online platform and therefore avoiding using a bank.

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Debenture

Back

Long-term security yielding a fixed rate of interest, issued by a company and secured against assets.

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Distributed profit

Back

Profit that is returned to the owners of a business.

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Dividends

Back

Share of the profit paid to shareholders in a company.

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Drawings

Back

Money taken out of the business by the owner for personal use.

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External finance

Back

Finance obtained from outside the business.

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Flotation

Back

Process of a company 'going public'.

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Hire purchase

Back

Buying specific goods with a loan, often provided by a finance house.