Posts published in December 2021

Business Angels are informal wealthy investors who invest in high-risk and high-return entrepreneurial businesses at a very early stage.

Venture Capital (VC) is capital invested in business start-ups or growing small and medium businesses offering innovative technology.

Crowdfunding is the use of small sums of money from a large number of private individual people to finance a new business venture.

Share issue is the process by which limited companies pass on new shares to investors. All limited companies issue shares.

Convertible bonds, or convertible debentures, are types of bond that the holder can convert into shares in the issuing company.

Bonds, or debentures, are fixed-income financial instruments, essentially long-term loans issued by a business to investors.

A mortgage is a long-term bank loan used by the business for the purchase of land or buildings. Mortgages are secured bank loans.

A long-term bank loan is provision of finance by the lender to the business for a long period of time. The lender is a commercial bank.

The business has two options when it comes to using capital for growth. As long-term finance, it can choose Debt Finance or Equity Finance.

Hire purchase occurs when an asset is sold to the buyer who agrees to pay fixed payments over an agreed period of time. How does hire purchase work?

Sale-and-leaseback is a transaction when the business sells a particular Fixed Asset and immediately lease that asset back.

Leasing is obtaining the right to use assets in exchange of paying a leasing charge, or rent, over a fixed period of time.