Raising finance

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  • Raising Finance
    • Owner's savings
      • Advantage: Quickly Avaliable
      • Disadvantage: It increases the risk taken by owners
    • Borrowing from family and friends
      • Advantage: Dont have to pay interest
      • Disadvantage: You will have to pay them back
    • Overdraft
      • Disadvantage: It is an expensive way of borrowing and you have to pay interest.
      • Advantage: Quick and easy to set up
    • Bank loan
      • Advantage: You're guaranteed the money for the duration of the loan (they cant demand it back)
      • Disadvantage: You have to pay back the loan and interest
    • Selling Shares
      • Advantage: Allows small business to start up without paying interest
      • Disadvantage: Sole traders can't sell shares
    • Venture Capitalist
      • Advantage: You can say how much money you need to start up
      • Disadvantage: You lose a percentage of your business
    • Government Grant
      • Advantage: You don't have to pay it back
      • Disadvantage: You wont alwasy get the full cost

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