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Spec point: A-Level Edexcel – 2.1.2 External Finance

Every note that covers this specification point.

Finance

Venture Capital

Venture Capital in a Nutshell Venture capital is a form of private equity finance provided to high-potential startups and small businesses by investors or specialist firms. It offers large sums of funding…

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Finance

Private Equity

Private Equity in a Nutshell Private equity refers to investment capital provided by firms or funds directly into private companies, or used to take public companies private. It offers businesses large-scale funding…

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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

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

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

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

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

External Sources of Finance

External Finance in a Nutshell External finance is money raised from sources outside a business, such as bank loans, share capital, or venture capital. It allows firms to fund growth, purchase assets,…

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Finance

Sources of Finance

Sources of Finance in a Nutshell Sources of finance refer to the different ways a business can raise money to fund its operations, growth, or start-up costs. These include internal options like…

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