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Short Term Finance
Keywords
Question | Answer |
---|---|
Bank Overdraft | Permission from the bank for the business to withdraw more money from its current account than is in the account up to an agreed limit. |
Trade Creditors | A business buys supplies on credit and pays for them at an agreed later date (e.g. in 30 days). |
Expenses due | Some expenses, such as the electricity bill, the pone bill, broadband or a tax bill, do not have to be paid immediately and the money can be used in the meantime to finance the business. |
Short term financial needs | Money the business needs to pay for the everyday bills it would have in its business, e.g. insurance, rent, electricity, wages, stock for resale, wages, etc. |
Short term finance | Repaid within one year |