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Types of Financing - Coggle Diagram
Types of Financing
Bank Overdraft
An overdraft is a credit facility operated through a current account.
overdraft covers short term financing requirement
Interest been charged.
Bank Interest.
Credit Card
A payment instrument that enable purchase for services instead of cash
Charges applicable for credit card.
Joining fee.
Annual Fee.
Finance charges.
Cash advance Fee.
Late Payment Charge.
Advantages of credit card
Meaning to obtaining credit.
Interest free credit
Easy to use as a method of payment.
can also withdraw cash from ATM.
Term Loans
Credit facility used to purchase immovable properties such as factories , shop etc.
Bridging Loan
Means bridge a gap that suggests borrowing financing.
Developer borrow money from bank to finance their project.
ensure the continuation of the project until completion.
Hire-Purchase
Includes a letting of good with an option to purchase by installment
Other types of payment cards
Debit Card.
Payment card helps in transaction that is deducted from saving or current account, upon authorization.
Charge Card.
:
Stored Value Card.
A prepaid card
Card contains a monetary value, preloaded by the issuer.
SVC schemes allow the holder to reload the amount in the card.
Interests
Charged for the amount overdrawn in the account.