Question

Fill in the missing names for the concepts.

• () is a form of finance where debt is divided into units and sold to investors.
• ()is a form of lending which has the same effect as borrowing to purchase the asset
• ()is a term loan that is secured by freehold property.
• ()is the act of bundling together illiquid financial or physical assets of the same type so as to provide financial backing for an issue of bonds.
• () is a flexible form of borrowing that allows a business to have a negative current account balance.
• A financing option that involves the bank or its subsidiary taking over a company’s sales ledger is known as ()

Answer 1

Debt Fund is a form of finance where debt is divided into units and sold to investors.

Hire Purchase is a form of lending which has the same effect as borrowing to purchase the asset

Loan Against Property is a term loan that is secured by freehold property.

Securitisation is the act of bundling together illiquid financial or physical assets of the same type so as to provide financial backing for an issue of bonds.

Bank Overdraft is a flexible form of borrowing that allows a business to have a negative current account balance.

A financing option that involves the bank or its subsidiary taking over a company’s sales ledger is known as Factoring