| A | B |
|---|
| Debenture | a long term loan to a business |
| Factor | a business which collects the debts of other businesses, for which it charges a fee |
| Hire purchase | legally, renting equipment prior to buying it. |
| Leasing | renting equipment |
| Loan | borrowing a sum of money which then has to be repaid with interest over a period of time 1-5 years |
| Mortgage | a loan where property is used as security |
| Overdraft | borrowing money from a bank by drawing more money than is actually in a current account. Interest is charged on the amount overdrawn |
| Gearing ratio | the ratio of long term borrowings of a company to its share capital |
