Sources of Finance — Internal and External (HSC SSCE Business Studies): Flashcards
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Internal sources of finance
Internal sources of finance
Funds generated from within the business
% Australian SME CEOs using internal funds
% Australian SME CEOs using internal funds
86%
Short-term borrowing repayment period
Short-term borrowing repayment period
Within 12 months
Long-term borrowing repayment period
Long-term borrowing repayment period
Longer than 12 months
Overdraft definition
Overdraft definition
Bank allows account to be overdrawn up to agreed limit
Factoring definition
Factoring definition
Selling accounts receivable at discount for immediate funds
% of receivables received within 48hrs via factoring
% of receivables received within 48hrs via factoring
Up to 90%
Max. investment per shareholder in share purchase plan
Max. investment per shareholder in share purchase plan
$30,000
Max. amount company can raise per year via CSEF
Max. amount company can raise per year via CSEF
$5 million
Debentures definition
Debentures definition
Promise to repay loan at fixed interest for fixed period