Sources Of Finance: Putting Your Own Money Into A Business

Submitted By jennyytoddy

Words: 496

Pages: 2

Open Document

Sources of Finance

Putting your own money into a business

Advantages
Make all the decisions
Complete control
Keep all of the profit
Disadvantages
Unlimited liability
Might not have the expertise on what need to be done like the financial expertise

Friend and family
Advantages
Low or no interest - as they might not ask for money back won’t want the money until established

disadvantage if the business goes bust you might lose your friends

retain profit take enough out for you to live on and the rest back into the business a disadvantage will be you won’t have enough to give for yourself.
An advantage is getting equipment and expanding without interest.
External sources of finance you are likely to go to the bank first of all a loan or over draft start-up costs (you will get a loan) premise stock market research vehicle Running Cost (you will get an over draft)
Stock
wages utilities maintenance

Joe is thinking of becoming a window cleaner
His likely customers will be either end of the town lit hi likely start-up costs
(go on internet do research)
Benefit
Be Your Own Boss
Work in The Fresh Air
Earn upto £1,000 a week
Low Start-Up Costs
Safe - Work from the ground
Flexible Working Hours
Low Stress
A Service in High Demand

have insurance

initial market research –start up phone bills –running state agents fee – van - premise stock wages – s +r training-s+r electricity-r fax machine-s furniture-s tax for van -r

Loans
Loans can help with the start-up cost. It can also be used once the business is underway to help finance a large purchase.
However, there are many types of loans available and it is important to hop around to find the best one.

Factors that we need to look out for.
The APR (annual percentage rate) – this tells you the rate of interest you

Sources Of Finance

http://www.bized.co.uk Sources of Finance Copyright 2006 – Biz/ed http://www.bized.co.uk Sources of Finance Copyright 2006 – Biz/ed http://www.bized.co.uk Business Growth Copyright 2006 – Biz/ed http://www.bized.co.uk Internal Sources of Finance and Growth • • • Selling more? Mind the queues. Copyright: iStock.com • ‘Organic growth’ – growth generated through the development and expansion of the business itself. Can be achieved through: Generating increasing sales – increasing revenue…

Words 645 - Pages 3

Essay about Sources of finance

86. Sources of finance – Long and Short Term 1. Missing Words. Short term finance is when a business needs to borrow money for less than a year. Medium term finance is when money is needed for one to five years;. Long term finance is when money is needed for over five years. In addition there is share capital, which does not have to be paid back at all. 2. Multiple Choice 2.1 Steve owns a painting and decorating business. Steve needs to buy himself a new van as his old one has just broken…

Words 585 - Pages 3

What Are The Various Sources Of Finance

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 TASK 2: Part 1: Assess and compare various costs involve with each source of finance to Vale filters Limited Part 2: Prepare…

Words 3106 - Pages 13

33966931 Sources of Finance Ppt Essay

SOURCES OF FINANCE 1 LEARNING OBJECTIVES Various sources of short term and long term finance Finance by financial institution 2 INTRODUCTION • It is rightly said that finance is the lifeblood of business. No Business can be carried on without source of finance . The financial manager is mainly responsible for raising the required finance for the business. There are several sources of Finance and as such the finance has to be raised from the right kind of source. 3 SOURCES OF FINANCE SPONTANEOUS…

Words 1232 - Pages 5

sources of finances used by businesses Essay examples

Unit 1 Task 3a, 3b and 3c: Sources of Finance I have chosen to write about the sources of finance for the Smithy Joinery Company which is an Ltd business which is based in Preston. Smithy Joinery is a specialist joinery company that does a wide range of mainly wood work jobs for customers. There are two main sections that sources of finance can be divided into. These are Internal from within the business and External from means of outside influences. Internal____________________________________________________________________…

Words 3911 - Pages 16

Sources Of Internal And External Finance For A Selected Business

P4- Describe the sources of internal and external finance for a selected business M2- Analyse the advantages and disadvantages of a range of different sources of finance for a selected business D1- Evaluate the best source of finance to meet the needs of a selected business. Savings When starting your own business a lot of people use savings that they have saved over a period of time. Most people can’t afford to start a business by just using savings. If you need to start off a business by just using…

Words 4448 - Pages 18

P4 Describe Sources of Internal and External Finance for a Selected Business. Essay

Head of Finance Report From: Monaj Gurung Date: 23rd October 2012 Title: sources of internal and external finance for Waitrose Source of Finance All business needs money in order to operate properly. Finance simply means the management of some amounts of money. And source of finance is generally the place where money comes from. Example Waitrose gets money by selling their products to the customers and hence customers are the different classes Internal and External source of finance. Internal…

Words 896 - Pages 4

Generally Accepted Accounting Principles and Financial Statements Essay

performance for the financial year 2013 and 2012 has been generated and critically analyzed for the purpose of this report. Literature briefing has been described on the sources of finance available to an organization. Advantages and disadvantages of the sources available is discussed further to find out whether that particular finance is correct or not. Income statement and a statement of financial position were extracted from the data provided. Financial calculation of company regarding profitability…

Words 1314 - Pages 6

Financial Decision Making Essay

Make a financial decision for an individual Resource A: Brainstorm ideas of sources of financial and non-financial information The following table may help you brainstorm ideas about sources of information relevant to your car purchase, other associated costs to allow you to complete a cash budget, and other information that will influence your finance option decision. IDENTIFICATION OF POSSIBLE INFORMATION SOURCES | |…

Words 802 - Pages 4

Essay on Business Studies

require short-term goals to assist acheivment Interdependence with other key business functions Key business functions include - - operations - marketing - finance - human resources means one must interact with all the other functions in order to achieve goals of a business ← Finance → | Operations Marketing Human resources Influences on financial management influences on the financial management of business include a range of external factors…

Words 684 - Pages 3