Sources Of Finance Jeopardy Template

Definitions	Advantages	Disadvantages
100 Business Angles Wealthy individual who invests their own money on a business with potential	100 Business Angels For businesses that can’t get loans	100 Business Angels High risk, high return
200 Leasing All this means is signing a contract committing the business to make regular payments on a car over a period that is usually two or three years.	200 Leasing This medium term source of finance is a way of obtaining the sue of important assets without ever having to buy them.	200 Overdraft This source of finance in 24 hours. This could force a business into liquidation.
300 The interest rate is variable, this means that is the cost of borrowing in the UK increases, the bank can increase the interest rate of this form of finance. This means uncertainty for this business which makes it hard for them to plan. Overdraft	300 Savings accumulated or invested directly in capital equipment or in paying off a home mortgage	300 Leasing Unless you choose to make a lump sum payment at the end of the agreed time frame, you never own the asset. This means that you are constantly paying money for an asset you never own.
400 Venture capiltalists an investor who either provides capital to startup ventures or supports small companies that wish to expand but do not have access to equities markets.	400 Loans Interest rates are likely to be lower than those of shorter term sources of finance such as overdrafts. You probably would take one of these out from the bank.	400 Loans The bank is likely to secure this type of finance against the assets of the business such as machinery. If the payments are missed the business could be forced to hand over these assets.
500 Debentures a type of debt instrument that is not secured by physical assets or collateral. Debentures	500 Overdraft This form of interest is very flexible. It is there but if you have enough money in your account then you don’t have to use it.	500 Debentures are backed only by the general creditworthiness and reputation of the issuer.

Sources of Finance

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