Zusammenfassung der Ressource
Raising Finance
- Retained profits-
profits earned by a
business and are kept
than distributing the
profit to the owner of
the business
- Advantages
- owner in charge of
how they're used
- low costs and flexible
- Disadvantages
- need to commence
trading and exceed
break even output
before profits can be
earned
- does take time
- Venture Capital- invest in large sums of money
- Advantages
- Large
amounts
of cash
- potential large amounts of money
- Disadvantages
- only invest
in low risk
businesses
- Time consuming
- Bank overdrafts-
agreed amount of
excess money that
can be with drawed
when account is
empty
- Advantages
- Instant finance
- Students have no interest
- Disadvantages
- Repayment on demand
- Higher interest rates than loads
- Bank Loans- lent of
money from a bank over
a set period of time
- Advantages
- Long term
- Fixed repayment
periods
- Instant finance
- Disadvantages
- Interest charge
- provide a business plan
- Loans from family and friends
- Advantages
- no interest
- pay back anytime
- Disadvantages
- not high amounts
- strain on relationships
- Credit Card-
credit from bank
- Advantages
- 30-40 free day credit
- quick and easy
- Disadvantages
- Receive penalties
- Interst
- Share
capital- sell
percentage of
business to
invest
- Advantages
- large sums of money
- no interest
- Disadvantages
- Lose control
- share holders
expect share of
profit
- Dividend