Sources of finance
Ordinary share capital - sale of shares in the business. This allows them to raise large sums of money. But the cost of planning and implementing a share issue can be expensive, and time consuming.
Bank Loan - banks want to know the risks involved, repaid on a monthly basis over a number of years, it can be medium - long term and incurs high interest charges - either fixed or variable, easy to access but banks want security so assets maybe be used.
Overdraft - Short term bank loan, able to account more money than it has deposited, used as cover cash shortages, interest is paid only when the account is overdrawn, flexibility, high rate interest.
Venture capitalists - finance providers, invest in smaller, very risky businesses, early stage of a enterprise, share ownership in business
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