sorces of finance

Owners savings

interest doesnt need to be paid

business remains totally in the control of the owner

Own Personal savings

Capital from profits

some businesses it is not possible to use capital profits

if they are charity or not-for-profit organisation

Banks

Offer Loans

secuirity will be need to be provided

Interest is payable based on prredicted risk

Building Societies

Interest is payable

security will be needed

The risk of the venture

Hire Purchases

resources can be used by the business while being paid for to a finance company

if payments are not made then finance company can take them back

goods are not owned by the business

Leasing

Businesses can make use of resources and pay to use them

business doesnt own the goods

leasing often used by companies for vechiles

Venture Capitalists

people who invest in new and u--and-coming risky ventures

usaully used in return for a share of the ownership

Factoring

business that sells it debts

recieves the money immediately

takes a percentage cut for this service

Share Issues

a good way to raise finance

shares are not shared publicly

limited companies can sell shares on the stock exchange

known as floating on the stock exchange

Family or friends

family or friend who invests in the businss in exchange for ltd shares or paid back

often paid back at a lower rate

payable to a bank or other leader

government grants and Princes trust loans and grants

Available from EU, National government and local government.

Grant were they dont have to pay the loan back

businesses run by the age of 18-30 can apply for low interest loans from the princes trust