Sources of finance

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Share Issues

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
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Investors (Venture capitalists)

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.
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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.
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