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LO7 revision mindmap - Coggle Diagram
LO7 revision mindmap
Personal savings, Internal, short term
Benefits
no interest, quick and convenient
doesn’t require borrowing money
Drawbacks
the owner might not have enough savings or may need the cash for personal use, once the money is gone, it’s gone
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Retained Profit, Internal,
Drawbacks
Once the money is gone, it cannot be reclaimed
Benefits
quick and convenient, easy access, no interest
Bank Loan, external, long term
Benefits
easy and quick to access, can get a significant amount of money at one time
Drawbacks
have to pay interest, not flexible
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Overdraft, External, short term
Benefits:quick access, allows emergency purchases
Drawbacks:high interest rates, is only a short term solution
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Credit card, external, short term
Benefits
Aids cash flow, easy to access for small payments
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Hire purchase, external, long term
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Drawbacks
Interest is charged on hire purchase items, equipment is not owned until the final payment is made
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Share issue, external, long term
Benefits: can gain lots of money quickly, no interest
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Crowd funding, external, long term
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Benefits: Fast method of raising capital, Build a customer base early
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Business ideas
innovation, entrepreneurs, inventors, employees, accidental discover, as a solution to a problem.
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