What it is: Shares are when you give a specific percentage away to indivsiuals.
- A share can create a large capital for the business,
- Shares are a long term of finance
- If the amount of shareholders own more then the business holder they can lose control of their business.
- The more shareholders the less profit the owner recieves
Investors (Venture capitalists)
What is this: An investor who has the abiltiy to startup ventures by giving the business money in return for a share, they can also aid a company in expansion.
- Can recieve mentoring
- The deal doesn't include interest meaning the amount they invest can't increase unless the VC decides to increase their offer.
- Can lose control of the business
- In order to make their money back a finacial agreement is usaully made, this can place pressure on the indivisual.
What is this: A loan is giving a grant of money, usually provided by a bank, the loan has to be paid back.
- Once the loan is paid you don't have to pay anthing else back or be associated with that bank.
- What you can spend a the loan on is flexiable.
- The interest on the loan can increase which means more money has to be paid back.
- Loans usually have to be paid back within a specific timeframe which can add financial pressure.