‘Country Side Taxi’ is Taxi business owned by Tom Ashton which is small type of business. For expansion of the business he and his son need the source of finance. The best way of securing finance for them are mentioned below:
1. Short term and long term Loans from bank :
ADVANTAGES: In long term loan instalment can be paid at fixed amount per month until the agreement terminate. The short term loans are cheaper.
If one fail to pay fixed repayment on time there is charge of interest fee on particular account. In long term loans interest rate is more.c
2. Government Grant:
ADVANTAGES: In long term loan instalment can be paid at reasonable amount per month until the agreement terminate. Short term loan can be paid in shorter duration according to suitable condition.
DISADVANTAGES: Getting eligible for the loan is less. Even one has to move to new area where scope of business is.
3.Venture capitalist finance:
ADVANTAGES: The right business angel can bring bright ideas, skills and valuable contact for the business.
DISADVANTAGES: The investors may ask for majority power in the business.
4. Finance lease:
ADVANTAGES: The lessee is the owner of the vehicle. The risk and rewards of ownership are born by the lessee.
DISADVANTAGES: Finance lease may mentioned as debt on balance sheet which can abstracting the future borrowing.
The percentage of people preferring the source of finance
Term Loan: 24.3%
Equity Finance: 2.4%
Requirements For Loans:
* Banks needs security for the safety if the lender do not return the loan.
* Good credit history of the account.
* Guarantor for the loan.
* Eligibility on can based on locality, duration of business, sales revenues, sex, race and strong reason for financing.
Venture capitalist Finance
* Business Proposal from which can have scope of profits.
* There is small amount of... [continues]
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