1 / 6

Finance

Finance. The benefit of Finance. - it provides or raises the funds or capital for businesses. - A branch of economics. Science of funds management. - Includes saving and lending money. Credit policy. Trade Credit. - Advantages. - Disadvantages. - Credit forms.

vangie
Download Presentation

Finance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Finance The benefit of Finance • -it provides or raises the funds or capitalfor businesses. - A branch of economics. Science of funds management. - Includes saving and lending money.

  2. Credit policy Trade Credit. - Advantages. - Disadvantages. - Credit forms.

  3. What does trade credit mean? • Trade credit exists when one firm provides goods or services to a customer with an agreement to bill them later, ( without making immediate cash payment) or receive a shipment or service and it might give a discount for early payment. Why do companies offer trade credit? • Financing Growth. Example!

  4. Advantages of trade credit. • People can buy goods and pay for them at a later date. • Increase the sales. • the business can focus on other areas such as sales, marketing and research. • Improve cash flow. Why do small business go for trade credit instead of borrowing from bank or financial institutions?

  5. Disadvantages of trade credit. • If you do not pay them back on time you can build up a bad credit history. • Only companies with good credit history can be accepted the trade credit grant. • People can buy more than they can afford. • Risk of Bankruptcy. Different types of credit forms • Credit Cards. • Exchange of product.

  6. Thank you !

More Related