Basic Finance

The difference between total sales and total costs of the business.

• Net profit.

• Retained earnings

Profits earned by a business that are reinvested in the business rather than paid out as dividends

• Retained Profit

• Inside Profit.

The money required to set up, run and expand a business.

• Finance

• Assets

A loan facility from the bank that may have to be repaid at any time.

• Over draft

• Loan

The cost of borrowing money, or the return from saving.

• Factoring

• Interest

Where money is borrowed and repaid under agreed terms and conditions.

• Loan

• Overdraft

Everything that the business owns that has a monetary value, including cash, stocks, debtors.

• Assets

• Capital

Where money is borrowed directly from the public through an instrument called as.

• Share capital

• Debt Financing

Provision where the money against the debtors receivable can be discounted earlier.

• Debtor Factoring

• Invoice discounting

A facility where a product can purchased but payment is made later.

• Trade Credit

• Hire Purchase