Miss
STUDENT NAME: NADEZHDA KOSTADINOVA
FINANCIAL SOURCES, AVAILABLE TO OUR BUSINESS
Internal : - Capital External :
Еxternal as a main source of finance - Bank loans - Equity finance - Credit cards and overdraft
Еxternal as a financial source for equipment - Hire Purchase - Leasing
OWNER FINANCE (CAPITAL)
The Owner financing – Capital is source of finance which can be explained as using money which come from the owners. It is a financial resources available for use.
IMPLICATIONS OF CHOICE:
Legal: Nothing can happen, because it owner’s money. It is impossible to sign a contract with yourself and take a future obligations.
Finance: Lost of money, could owe someone. Doesn’t pay back the money, doesn’t pay interest.
Dilution of control: There will be no dilution of control due to the fact that the money are your own and you can use it however you want. Only in case of partnership, the partner may take the control.
Bankruptcy: It is a possibility that in the event of bankruptcy, you can lose your money and if you owe to someone else you can sell all of the assets you have. With the money you have from the selling you will pay back all of our dues.
Advantages - Owner financing is a perfect choice if it is possible because the money which you use are your own and you don’t need to give them back to anyone else. It is not necessary to think and worry about the period you have to give them back and you don’t need to pay an interest on them.
Actually, when you use own money to start-up business you don’t take big risk and you don’t lose money when you pay interest to somebody else. Your business profit is going to increase when you don’t pay interest and don’t pay back any money.
Disadvantages – There is always the risk of losing your own money and if you don’t have a big amount saved up for yourself it maybe very inconvenient for you.
You can lose the control and
FINANCIAL SOURCES, AVAILABLE TO OUR BUSINESS
Internal : - Capital External :
Еxternal as a main source of finance - Bank loans - Equity finance - Credit cards and overdraft
Еxternal as a financial source for equipment - Hire Purchase - Leasing
OWNER FINANCE (CAPITAL)
The Owner financing – Capital is source of finance which can be explained as using money which come from the owners. It is a financial resources available for use.
IMPLICATIONS OF CHOICE:
Legal: Nothing can happen, because it owner’s money. It is impossible to sign a contract with yourself and take a future obligations.
Finance: Lost of money, could owe someone. Doesn’t pay back the money, doesn’t pay interest.
Dilution of control: There will be no dilution of control due to the fact that the money are your own and you can use it however you want. Only in case of partnership, the partner may take the control.
Bankruptcy: It is a possibility that in the event of bankruptcy, you can lose your money and if you owe to someone else you can sell all of the assets you have. With the money you have from the selling you will pay back all of our dues.
Advantages - Owner financing is a perfect choice if it is possible because the money which you use are your own and you don’t need to give them back to anyone else. It is not necessary to think and worry about the period you have to give them back and you don’t need to pay an interest on them.
Actually, when you use own money to start-up business you don’t take big risk and you don’t lose money when you pay interest to somebody else. Your business profit is going to increase when you don’t pay interest and don’t pay back any money.
Disadvantages – There is always the risk of losing your own money and if you don’t have a big amount saved up for yourself it maybe very inconvenient for you.
You can lose the control and