Kategoriak: All - factoring - trade - loans - finance

arabera Adriana Riascos 6 years ago

169

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Businesses require finance for several crucial activities, including expansion, startup, and day-to-day operations. Expansion needs funds for new locations or international branches.

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WHY BUSINESS NEEDS FINANCE

existing the

DEBTOR
is an individual or business who has borreowed funds from a business and so owes it money
CREDITOR
is and individual or busines that has lent funds to a business is owed money

finance refers to soucers of money for a business, firms need finance to

EXPAND
the business,eg having funds to pay for a new branch in a different city or country
RUN
the business,eg having enough cash to pay staff wages and suppliers on time
START UP
a business, eg pay for premises,new equipment and advertising

SOURCES OF FINANCE

Long term and can be paid back over many years
FACTORING
TRADE CREDITS
OVERDRAFT FACILITY
some sources of finance are short term and must be paid back within a year
DEBENTURES
LOANS
OWNERS

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