Junior Cert Sources of Business Finance

An Internal source of finance is

• a type of funding received from other businesses and financial institutions

• finance which comes from a business's own resources

Equity Capital is

• money borrowed from external sources and must be repaid with interest

• money received by selling shares

Short term finance is usually paid back no longer than

• 1 month

• 6 months

• 5 years

• 1 year

Long term finance is usually repaid

• 1 to 5 years

• 6 months to 1 year

• 5+ years

• 1 to 3 years

When the bank allows you to withdraw more money from your current account than you have in it, this is a

• Trade Creditor

• Factoring Debt

• Accrued Expense

• Bank Overdraft

Trade creditor is a person or business to whom your business owes money, this is a

• Medium term source of finance

• Long term source of finance

• Short term source of finance

Renting an asset over a number of years while making fixed regular payments

• Medium term loan

• Bank Overdraft

• Hire Purchase

• Leasing

Money invested into the business by its owners in return for a dividend (portion of the profit)

• Share Capital

• Grants

• Debentures

• Mortgage

The purchaser pays regular fix payments until the full amount is paid and then ownership is transferred

• Leasing

• Bank Overdraft

• Hire Purchase

• Venture Capital

Money received from the goverment, local authority or EU to fund a project

• Venture Capital

• Debenture

• Mortgage

• Grant