Sources of Finance

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Source of Advice| Strengths| weaknesses|
Bank | For my business I will most likely get my loan from the bank because it is affordable and I can be able to get money from a legitimate source. This will be a good option because as a business that is starting up, it will be very hard to find capital. You can also get one to one advisers that will help you understand the business more The bank can also help me in starting up a business because they might offer help in giving knowledge on starting a new business and advising me on how to go about starting my own. The workers there will also have good experiences in dealing with new businesses and they can be able to calculate my expenses and how much I will need to open up the business. | You may need to have an account with the bank to get a loan with them. This can be a problem especially if you already bank elsewhere. They might also tend to add more interest on the loan when you pay back and this might be very hard to pay off as the interest increases over time and sometimes it ends up leaving the business sin debt. As a small business it is relatively harder to pay off the loan. And when you don’t pay the loan they might reposes my personal things such as my house or car or whatever I may have put down for collateral| Experienced Entrepreneurs | Advice would be better from them because they have had experience starting up their own businesses and they might have gone through the same challenges might be facing. You also don’t need to spend money to get this kind of advice. They might even help to set my business sup by giving me the right contacts. For e.g. which bank would be best to get my loan from or which agency I should call to find a good location.| Some of them may not want to help others by sharing their business strategies. Our businesses might be different so their advice might not work for mine. Some of the advice given may also be detrimental to the business so you will need to be...
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