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
business is raising the money to get going. The entrepreneur might have a great idea and clear idea of how to turn it into a successful business. However, if sufficient finance can’t be raised, it is unlikely that the business will get off the ground.
Importance of Finance
Finance is very important for business organisation . Finance includes planning of financial resources, making of optimum capital structure and effective utilization of financial resources by deep analysis of cost of capital and capital….
1. Identify and describe the various sources of finance
1.1 Internal source
1.2 External sources
2. Assess the implication of the difference sources of finance related to risk, legal, financial and dilution of control and bankruptcy
2.1 Issue debt
2.2 Issue equity
3. Select appropriate sources of finance and make recommendations on the best ways of raising finance
Part 1: Assess and compare various costs involve with each source of finance to Vale filters Limited
Part 2: Prepare….
Legal structure of the business
Different businesses depending on their legal structure are able to obtain different sources of finance easier than others. For example a larger company may be able to obtain a loan easier than a smaller business. I will now go on and look at the different legal ownerships are and talk about their financing.
A sole trader is usually owned and controlled by one person. Small businesses such as sole traders are usually financed by the owner’s own personal….
Section 1 – Sources of Finance
There are 4 main types of business ownership:
• Sole trader
• Private limited company (Ltd)
• Public limited company (Plc)
Each of these types of business needs to raise finance for capital investment
This is a business that is owned by one person. Sole Traders are responsible for raising all the finance to set up and run the business. Usually a sole trader would be for a small business/ (businesses with a flat….
Sources of finance
Some sources of finance are short term and must be paid back within a year. Other sources of finance are long term and can be paid back over many years.
Internal sources of finance are funds found inside the business. For example, profits can be kept back to finance expansion. Alternatively the business can sell assets that are no longer really needed to free up cash.
External sources of finance are found outside the business. For example from creditors or banks.
Sources of Finance
The financing of every business is the most fundamental aspect of its management. Get the financing right and the company will have a healthy business, positive cash flows and ultimately a profitable enterprise. The financing can happen at any stage of a business 's development. On commencement of your enterprise the business entity will need finance to start up and, later on, finance to expand.
Finance sources may be internal or external but they may also be short, medium or….
TERM SOURCES OF FINANCE
There are various sources available to meet short term needs of finance. The different
sources are discussed below:
7.1 Trade Credit: It represents credit granted by suppliers of goods, etc., as an incident of
sale. The usual duration of such credit is 15 to 90 days. It generates automatically in the
course of business and is common to almost all business operations. It can be in the form of
an 'open account' or 'bills payable'.
Trade credit is preferred as a source of finance….
Sources of finance
What are the main sources and finance for UK firms and why?
All firms need some kind of financing. Access to finance may differ considerably from firm to firm depending on what type of business they are and how big/known they are; Sole Trader, Public Limited or Private Limited Company.
There are both INTERNAL and EXTERNAL sources of finance. Finance can be short, medium or long term.
Internal sources of Finance: 2 main types
1) Funds from the owner(s) and the family….
look for different sources of finance that can help them maintain and develop the businesses. There are various sources of finance that the companies need to consider in particular cases. Each source has it own advantage and disadvantage and different source will be more advantage in different case.
Sources of finance are divided into 2 main kinds depend on the length of the sources and the amount of money: Long term and short term sources
I. Long term sources of finance:
Introduction - Sources of Finance
Introduction to the Sources of Finance resource.
Sources of Finance
This resource is designed for use with Accounting courses at A ' level. This resource is relevant to the following:
* AQA Module 5, Section 14.5: 'Types of Business Organisation, Sources of Finance '
* OCR Module 2505, Sections 5.3.2 and 5.6.2
For many businesses, the issue about where to get funds from for starting up, development and expansion can be crucial for the success….