Financing Business Activity

Thursday, 10 February 2011

1.To start up a business.
2.Expand an existing business.
3.Finance during difficulties.
4.Capital expenditure.
5.Revenue expenditure.

1.Overdrafts.
2.Trade credit.
3.Factoring of debts.

1.Bank loans.
2.Hire purchase.
3.Leasing.

1.Issue of shares.
2.Long term loans/debt finance.

1.Retained profit.
2.Sale of existing assets.
3.Selling stocks to raise cash.
4.Owner’s own savings.

1.Issue of shares.
2.Bank loans.
3.Selling debentures.
4.Factoring of debts.
5.Grants & Subsidies from outside agencies.

1.Purpose and time period.

2.Amount needed.
3.Status and size.
4.Control.
5.Risk and gearing.