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Business Finances (LONG TERM (Retained earnings:is when a business is…
Business Finances
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SHORT TERM
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Trade Creditors: buy on credit, pay for them on an agreed later date.
Expenses Due: for expenses that doesn't have to be paid straight away you can put it in the bank so you can earn interest on your savings.
MEDIUN TERM
Term Loan: a loan taken out from 1-5 years+ interest. paid back in instalments. Can be tailored to suit the business.
Leasing: a business can lease their assets then pay an agreed amount over a period of time. the asset can be updated when the agreement is up.
Hire Purchase: use an asset immediately and pay for it in instalments. 3 Parties [ the buyer, seller, and financial institution]
LONG TERM
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Grants: sum of money given out by government to start or expand a business. have to meet a certain criteria
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Sale and Leaseback:selling a valuable asset to raise money.sold to an investment company and leassed back.No longer owns the asset. Not in control.
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