BTEC Business Level 3 - P4: Describe sources of internal and external finance for a selected business
P4: Describe sources of internal and external finance for a selected business
Sports clothing business
The bank I will use is NatWest as it is the bank I am currently with, therefore, I am more familiar with them then another bank.
Starting a sports business there is a number of things to take into account such: whether or not you are better off leasing a building instead of buying, business insurance, how you are going to obtain the money to enable the business to get up and running without lack of funding, assets and how you are going to make payments.
Location of leasing
Located in Priory Quarter, Havelock Road, Hastings. High quality building that has a floor space of 24,500 Square feet. This would be ideal for the business to use and renovate due to the size allowing products to be stored on site.
The cost of this would be £18,000 pa. The cost could be covered by a fixed business loan; this would allow the business to become operation and pay the use of assets such as: delivery transport and staff wages. The fixed business loan would offer a loan of £25,001 to £250,000 with a fixed payment over a ten year period, if the loan is paid off before the ten years interest will be expected dependent on payment.
Storage facilities the size of 80,000 Square feet costing £30,000 pa, which will allow suitable storage for vehicles and products.
Insurance
The insurance of the business depends on the business type, size and if it currently is existent, therefore, there is no set quote without going through the process. Because the business will be new NatWest offer 15% of the first year on the insurance which would make the first year cheaper and more profitable.
Obtaining money
Personal savings from previous job and the loan from the bank should cover the money needed to start the business. Wages will be covered by taking out the full loan and with good sales and expansion the total earning of the first year should cover all payments.
Payments will be paid
Sports clothing business
The bank I will use is NatWest as it is the bank I am currently with, therefore, I am more familiar with them then another bank.
Starting a sports business there is a number of things to take into account such: whether or not you are better off leasing a building instead of buying, business insurance, how you are going to obtain the money to enable the business to get up and running without lack of funding, assets and how you are going to make payments.
Location of leasing
Located in Priory Quarter, Havelock Road, Hastings. High quality building that has a floor space of 24,500 Square feet. This would be ideal for the business to use and renovate due to the size allowing products to be stored on site.
The cost of this would be £18,000 pa. The cost could be covered by a fixed business loan; this would allow the business to become operation and pay the use of assets such as: delivery transport and staff wages. The fixed business loan would offer a loan of £25,001 to £250,000 with a fixed payment over a ten year period, if the loan is paid off before the ten years interest will be expected dependent on payment.
Storage facilities the size of 80,000 Square feet costing £30,000 pa, which will allow suitable storage for vehicles and products.
Insurance
The insurance of the business depends on the business type, size and if it currently is existent, therefore, there is no set quote without going through the process. Because the business will be new NatWest offer 15% of the first year on the insurance which would make the first year cheaper and more profitable.
Obtaining money
Personal savings from previous job and the loan from the bank should cover the money needed to start the business. Wages will be covered by taking out the full loan and with good sales and expansion the total earning of the first year should cover all payments.
Payments will be paid