sorces of finance
External
government grants and Princes trust loans and grants
businesses run by the age of 18-30 can apply for low interest loans from the princes trust
Grant were they dont have to pay the loan back
Available from EU, National government and local government.
Family or friends
payable to a bank or other leader
often paid back at a lower rate
family or friend who invests in the businss in exchange for ltd shares or paid back
Share Issues
known as floating on the stock exchange
limited companies can sell shares on the stock exchange
shares are not shared publicly
a good way to raise finance
Factoring
takes a percentage cut for this service
recieves the money immediately
business that sells it debts
Venture Capitalists
usaully used in return for a share of the ownership
people who invest in new and u--and-coming risky ventures
Leasing
leasing often used by companies for vechiles
business doesnt own the goods
Businesses can make use of resources and pay to use them
Hire Purchases
goods are not owned by the business
if payments are not made then finance company can take them back
resources can be used by the business while being paid for to a finance company
Building Societies
The risk of the venture
security will be needed
Interest is payable
Banks
Interest is payable based on prredicted risk
secuirity will be need to be provided
Offer Loans
internal
Capital from profits
some businesses it is not possible to use capital profits
if they are charity or not-for-profit organisation
Owners savings
Own Personal savings
business remains totally in the control of the owner
interest doesnt need to be paid
