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Finances : - Coggle Diagram

- - - - Share capital: refers to the money raised from selling shares in the company.
      - Loan capital: refers to medium-long-term money a business get from commercial lenders such as banks that are charged with interest charges, are imposed and can be fixed or variable, depending on the agreement between borrower and lender. The amount borrowed is paid back in instalments over a predetermined period, such as 5, l O or 25 years.
      - Overdrafts: An overdraft is a financial arrangement offered by banks that allows an account holder to withdraw more money from their bank account than the available balance, up to a predetermined limit. It essentially allows the account holder to have a negative balance temporarily, enabling them to cover unexpected expenses or manage short-term cash flow gaps. Overdrafts are a form of short-term borrowing and provide a buffer against temporary financial shortages.
      - Grants: Grants are financial awards or contributions given by organizations, institutions, governments, foundations, or individuals to individuals, businesses, non-profit organizations, or research projects for specific purposes. Unlike loans or investments, grants do not need to be repaid and are often provided to support activities that align with the grantor's goals, objectives, or areas of interest.
      - Trade credit: , refers to a common form of short-term financing that allows a buyer (usually a business) to purchase goods or services from a supplier on credit, with an agreed-upon period within which the buyer must make the payment.
      - Subsides: are financial assistance provided by governments, institutions, or organizations to support specific industries, activities, or individuals. the focus of subsidies is to provide extended benefits to society.
      - Debt factoring: is a financial arrangement in which a business sells its accounts receivable (unpaid invoices) to a third-party company, known as a factor, at a discounted rate. This allows the business to receive immediate cash for its outstanding invoices, rather than waiting for customers to make payments on their own timelines.
      - Leasing: is a financial arrangement in which one party, the lessor, allows another party, the lessee, to use an asset (such as equipment, vehicles, real estate, or machinery) for a specified period in exchange for regular payments.
      - Venture Capital: is a type of financing provided to early-stage or high-potential startups and companies that are perceived to have significant growth potential
      - Business angels:are individuals who provide capital, typically their own personal funds, to early-stage startups and small businesses in exchange for ownership equity or convertible debt.