A-Level Business - Sources of Finance

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  • Sources of Finance
    • Overdrafts
      • Pros
        • Flexible for daily requirements
        • Only pay interest on actual amount borrowed
      • Cons
        • High interest
        • Bank may demand immediate repayment
        • May be unavailable to some SMEs
    • Debt Factoring
      • Pros
        • Quick cash
        • May reduce overdraft / interest charges
      • Cons
        • May reduce / eliminate profit margin
        • Customers become aware and lose faith
    • Bank Loans
      • Cons
        • Inflexible
        • May pay interest on unused funds
        • Collateral may be required
      • Pros
        • Negotiated for precise requirements
        • Plan for repayments in budgets
    • Mortgages & Loans
      • Pros
        • Ideal for long-term
        • Avoid loss of control
      • Cons
        • Must offer property as collateral
        • Large interest on long-term loans
    • Retained profits
      • Pros
        • No interest
        • No loss of control
      • Cons
        • Owners may wish to receive profits
        • May lose out on valuable alternative investments
    • Share Capital
      • Pros
        • Used for large amounts
        • No fixed interest payments
      • Cons
        • Companies only
        • Ltd can only sell additional shares with stakeholder approval
        • Control loss
    • Venture Capital
      • Pros
        • Brings expertise
        • No interest on entire amount
      • Cons
        • May not want anyone else involved in decisions
        • Only small amounts usually
    • Crowdfunding
      • Pros
        • Cheap source
        • Many banks are reducing short-term lending
      • Cons
        • Unfamiliar for many
        • May not raise loans
    • Peer-to-Peer Lending
      • Pros
        • For when banks are unwilling to lend
        • Arranged quickly
      • Cons
        • Only small sums, may be insufficient

Comments

Hiled1971

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Most of the time business start-up is not easy for everyone. Because we can spend some money on our business. Through this post, you can find some sources of finance. Where you can take money for your start-up. Here you can get how much you want without any fear. I also want to tell you about a great application that name is the No Credit Check Loans App which also helps you a lot. You can run this application also on your mobile. It's a mobile-friendly application. Apple has also verified the app and given permission for showing on the apple play store.

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