Methods of obtaining finance All businesses need finance to grow and, from time to time, to survive. Finance may be either long or short term, depending on what the money is needed for. Short-term sources of finance Source Advantages Disadvantages Bank Overdraft – a Can be agreed in This facility may a charge to short term facility at advance. setup and interest rates can be the bank to overdraw goods quite high. on your account. – Trade Credit your Receiving and paying Discount for prompt payment is suppliers give you time for them later which lost. If payment is late, to pay. improves cash flow. suppliers may refuse to supply the business with more on credit. Source Advantages Disadvantages
Methods of obtaining finance All businesses need finance to grow and, from time to time, to survive. Finance may be either long or short term, depending on what the money is needed for. Short-term sources of finance Source Advantages Disadvantages Bank Overdraft – a short term facility at the bank to overdraw on your account. Can be agreed in advance. goods This facility may a charge to setup and interest rates can be quite high. Trade Credit – your suppliers give you time to pay. Receiving and paying for them later which improves cash flow. Discount for prompt payment is lost. If payment is late, suppliers may refuse to supply the business with more on credit. Source Advantages Disadvantages
outcome_1_pupil_notes.docx