front 1 Start Up Capital | back 1 money required to set up a business and keep the business operating until the business starts to break even |
front 2 Overdraft | back 2 banks allow businesses to take additional money out of their account up to a certain limit |
front 3 Loan | back 3 bank lends a fixed amount for an agreed time period, which must be repaid with interest |
front 4 Equity Finanace | back 4 selling shares in the business to raise finance rather than borrowing |
front 5 Debt Finance | back 5 borrowing money from a bank which must be re paid with interest |
front 6 Micro Finance | back 6 lending small amounts of finance small business people to those who can’t access finance from another source |
front 7 Crowd funding | back 7 raising finance by raising small amounts of money from a large number of people, usually via the Internet. |
front 8 Trade Credit | back 8 – delaying payment to suppliers for an agreed time period |
front 9 Cash Flow | back 9 cash used to pay short term debts (current assets - current liabilities) |
front 10 Cash Flow | back 10 cash flow in and out of the business over a period of time |
front 11 Cash flow forecast | back 11 Estimate of future cash inflows and outflows usually calculated month by month to ensure there is enough cash to pay short term debts |
front 12 Net cash flow | back 12 Cash inflows - cash outflows |
front 13 Profit | back 13 Sales revenue - total costs of making a product/service |
front 14 Working Capital | back 14 - capital available to a business day to day to pay short term debts. Current Assets – current liabilities |
front 15 Cash In Flow | back 15 Cash going into a business |
front 16 Cash Out Flow | back 16 cash going out of the business |
front 17 Short term finance | back 17 finance required for short periods usually less than one year |
front 18 Long Term Finance | back 18 finance required for periods usually longer than one year |
front 19 Sale of assets | back 19 selling equipment /machinery/inventory to finance the business |
front 20 Retained Profit | back 20 reinvesting profits back into the business |
front 21 Owners Savings | back 21 – using owners own savings to finance the business |
front 22 Capital Employed | back 22 Money invested in a business (buildings, machinery) |
front 23 Internal Sources of Finance | back 23 Finance sourced from inside the business - for example owner's funds, sale of assets and retained profit all are |
front 24 Capital Expenditure | back 24 money spent by a business or organization fixed assets, such as land, buildings, and equipment. |
front 25 Revenue Expenditure | back 25 money spent by a business or organization on day to day operating costs such as rent, insurance, heating, maintenance etc |
front 26 Sale and Leaseback | back 26 Selling an asset for a capital sum and then leasing at an agreed rate from the buyer. |
front 27 Fixed Cost | back 27 Costs that don't change with output. |
front 28 Variable Costs | back 28 Costs that change with output. |
front 29 Marginal Costs | back 29 the cost added by producing one additional unit of a product or service |
front 30 Direct costs | back 30 A cost that can be directly tied to the production of specific goods or services |
front 31 Indirect costs | back 31 A cost that can't be directly tied to the production of specific goods or services |
front 32 Net assets | back 32 Total assets - Total Liabilities |
front 33 Reserves | back 33 Liquid assets held by a bank, company or government in order to meet expected future payments and/or emergency needs |
front 34 Window Dressing | back 34 Presenting the company accounts in a favourable light – to give the impression of a better financial position |
front 35 Trade Receivables | back 35 the value of payments to be received from customers who have bought goods on credit |
front 36 Trade Payables | back 36 value of debts for goods bought on credit payable to suppliers; also known as ‘accounts payables’. |
front 37 Debt Factoring | back 37 With debt factoring, a business can raise cash by selling their outstanding sales invoices (receivables) to a third party (a factoring company) at a discount. |