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1.3 - Coggle Diagram
1.3
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1.3.3 Cash and Cash flow
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cash flow being high is vital, as if you have little cash when bills come in the business can become insolvent
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sources of finance
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short term
overdraft- bank allows a business to take out more money than is actually present, very high interest rates
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long term
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share capital - floating stocks onnthe shares market for people to buy percentages of your business in exchange for lots of money
venture capital- selling large percentages of a business to bring in very experienced professionals who will invest in the business and help its growth
bank loan- temporary sum of money that is borrowed and will have to be repaid, small interest
crowdfunding- Online appeal to attract lots of people to invest expecting nothing in return, cannot normally raise a large sum of money
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1.3.2 Revenue, costs and profit
interest
an extra sum of money you need to pack back after borrowing a sum of money, these rates may be able to change or may not
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