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Notes by Nick Holmes

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Finance

Cashflow

Cash Flow in a Nutshell Cash flow is the movement of money into and out of a business over a given period. Positive cash flow means more money is coming in than…

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Finance

Business Angel

Business Angel in a Nutshell A business angel is a high-net-worth individual who invests personal funds into early-stage companies in exchange for equity. They typically provide mentoring alongside capital. Key advantages include…

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Finance

Profitability

Profitability in a Nutshell Profitability measures how effectively a business turns its revenue into profit after all costs have been deducted. It is not the same as profit itself: a business earning…

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Finance

Bank Loan

Bank Loan in a Nutshell A bank loan is a fixed sum of money borrowed from a bank, repaid over an agreed period with interest. It provides businesses with a lump sum…

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Finance

Costs

Costs in a Nutshell Costs are the total expenses a business incurs to produce and sell its goods or services. They include fixed costs such as rent, variable costs such as raw…

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Finance

Overdraft

Overdraft in a Nutshell An overdraft is a short-term borrowing facility provided by a bank that allows a business or individual to spend more money than is currently in their account, up…

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Finance

Profit

Profit in a Nutshell Profit is the financial surplus remaining after a business deducts all its costs from its total revenue. It is calculated as total revenue minus total costs. Businesses use…

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Finance

Share Capital

Share Capital in a Nutshell Share capital is the money a company raises by selling shares to investors. It forms a key source of long-term finance for limited companies, both private (Ltd)…

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Finance

Revenue

Revenue in a Nutshell Revenue is the total income a business receives from selling its goods or services before any costs are deducted. It is calculated by multiplying the selling price by…

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Finance

Trade Credit

Trade Credit in a Nutshell Trade credit is a short-term financing arrangement where a supplier allows a buyer to receive goods or services now and pay later, typically within 30 to 90…

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Finance

Working Capital

Working Capital in a Nutshell Working capital is the difference between a business’s current assets and its current liabilities. It measures whether a firm has enough short-term resources to cover its day-to-day…

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Finance

Financial Objectives

Financial Objectives in a Nutshell Financial objectives are specific, measurable monetary targets a business sets to guide its decision-making and measure performance. Common examples include revenue growth, profit maximisation, and return on…

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