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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9 min
Spec point: GCSE Edexcel – 1.3.4 Sources of Business Finance
Every note that covers this specification point.
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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9 min
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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10 min
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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10 min
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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11 min
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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10 min
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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11 min
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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10 min
Sale and Leaseback
Sale and Leaseback in a Nutshell A sale and leaseback is a financial arrangement where a business sells an asset it owns, such as property or equipment, and then immediately leases it…
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10 min
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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10 min
Asset Sales
Asset Sales in a Nutshell An asset sale occurs when a business sells individual assets rather than the entire company. This could include property, equipment, vehicles, or intellectual property. Asset sales allow…
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10 min
Retained Profit
Retained Profit in a Nutshell Retained profit is the portion of a business’s net profit kept within the company rather than paid out to owners or shareholders. It serves as an internal…
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10 min