• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Availability of Finance

Extracts from this document...

Introduction

Task 11- Availability of Finance There are three main types of financing: Short, Medium and long term Short Selling Assets: The business can sell factory or office areas and space that is not in use. Factoring: The factor is a organisation which will collects debts of other businesses quicker and more efficiently. Retained Profits: This is the part of the profit made that is left and is not distributed amongst owners instead it is retained to perhaps put back into the business. Grants: Government gives money to the business. Medium Bank loans: The borrowing of money from a bank however this has to be paid back including interest within a set period of time Trade credit: Businesses are able to spend money to purchase goods and services on credit. ...read more.

Middle

This money is used to enhance their employment rate and to develop the less wealthy areas of the country. Long Preference shares: In a limited company the shareholders receive a fixed amount of divided each year. When dividends are paid the preference shareholders seize precedence over normal shareholders. Ordinary shares: In a limited company the shareholders receive dividends each year dependant on the sum of profit. Venture capital: A financial institution: borrows money to businesses considering expansion rather than for new inventions or production. Mortgage: A long loan secured upon property. If the borrowers do not keep up with the payments then the property can be repossessed. Debentures: A long term loan to a business between 5-25 years. Finance availability for my Business The financial scheme that is be most suitable for my business will be by obtaining a bank overdraft. ...read more.

Conclusion

The actual area that I wish to rent will need a new design to make it viable and exciting to customers. My business will be new therefore my budget is not as large as other companies. I can apply for a grant from the government to start me off and keep the business alive. This will allow me to raise capital from sales to repay this type of finance. A bank loan will try and be avoided as it has many disadvantages to it. However it will allow me to pay off debts easily yet repayments need to be paid on a monthly basis including interest that makes it more costly depending on the income and the amount of the loan taken. This is problematic as attention will be needed to monitor the interest rates in order to be paying the less possible amount of money. Profits will be tried to kept at the highest possible level. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Accounting & Finance section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Accounting & Finance essays

  1. Marked by a teacher

    Business Finance. There are a number of sources of finance, which businesses will need ...

    3 star(s)

    much profit, which makes the owners in loss; because this means that the owners don't get what they invested, back. -Family & Friends: Borrowing money from family & friends is a good way to start up a business because you are borrowing money from people you know, and you can take as long as you want to repay it back.

  2. Costs, Profits and Break-even Analysis.

    Desk research concentrates on using data, which has already been collected. It can be collected by using information already held by the firm, using official information and records, asking for access to information stored by professional bodies and by searching publications such as newspapers.

  1. What does Finance involve.

    I will compare different companies to make sure I get the best deals and also to make sure that I have a back-up supplier in case the main company cannot supply my stock. I will then total all of these costs and this amount will be the total of my start up costs.

  2. Investment Portfolio - Shares and other investments

    46 0.81% 25-Feb-08 18.03 0.53 3.03% 5699.8 55.3 0.98% 22-Feb-08 17.5 0.74 4.42% 5644.5 -18.5 -0.33% 21-Feb-08 16.76 1.43 9.33% 5663 85.7 1.54% 20-Feb-08 15.33 -0.99 -6.07% 5577.3 -111.3 -1.96% 19-Feb-08 16.32 0.12 0.74% 5688.6 54.6 0.97% 18-Feb-08 16.2 -1.04 -6.03% 5634 -45.8 -0.81% 15-Feb-08 17.24 -0.31 -1.77% 5679.8 -68.4

  1. ways of finance (bussiness studies)

    full amount that you owe you will not have to pay interest on it but if you only pay a small amount of the money you owe you will have to pay interest on top of the money you owe.

  2. Complete Report on Askari Commercial Bank

    At the same time, we try to give them one of the best earnings per share in the banking industry of the country. Nation-wide Distribution of Branches / Regions / Areas and Operating Units Corporate Information Board of Directors * Lt. Gen. Waseem Ahmed Ashraf Chairman * Lt. Gen. (R)

  1. Financial Services

    try to cut down on non-essential expenses such as entertainment, but continue to put aside a little money for fun, and also try to postpone expenses whenever possible especially major purchases such as buying a brand new car, do take care of all the critical needs such as illness and

  2. Accounting and Finance

    Next, the liquidity ratios of the company are much higher than Sun's and average industry. Maybe they can plan to use spare money to invest the other equity or debt securities. The more effective way we use or invest liquid assets, the more profit it will increase and more and

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work