Credit means selling goods now but not getting paid until later.
Credit control means monitoring which customers are given credit and for how long, and ensuring they pay on time.
Security (also known as collateral) refers to an asset that can be sold by the lender to raise funds to pay back the loan if the borrower is unable to do so.
Equity finance is money brought into a business by the owner(s).
Retained earnings (also known as reserves) refer to profits retained in a business.
Trade credit means buying goods now but paying for them later.
An overdraft is permission to spend more money than is actually in a current account.
Term loans are medium-term loans from a bank to be repaid in monthly instalments over a number of years.
Leasing means renting an asset from a specialist leasing company.
Sale and leaseback is a contract to raise cash by selling a piece of property and simultaneously leasing it back on a long-term lease.
q q q q q q q q q q q q q q q q q q q q q Hire purchase means paying for an asset in instalments. q q q q q q q q q
A grant is essentially free funding provided to an enterprise. q q q Long-term loans can be for periods of up to 40 years.
