• 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)

    Other disadvantages are that it can be expensive to issue shares. Also companies have to endure the exact financial requirements of the stock exchange to be scheduled, and demands for shares are question to the doubts of the marketplace. Also one big disadvantage is that the business may not make

  2. Complete Report on Askari Commercial Bank

    Its focus is on harnessing the potential and energy of a professional work force to ensure effective attainment of goals set by the bank. HRD continued its support to vital organs of the organization by way of timely meeting their manpower needs.

  1. Identifying and describing the main financial service needs for a student starting at university

    4 MONTH 5 MONTH 6 RENT �175 �175 �175 �175 �175 �175 GAS �10 �10 �10 �10 �10 �10 ELECTRICITY �20 �20 �20 �20 �20 �20 WATER �10 �10 �10 �10 �10 �10 MOBILE �40 �40 �40 �40 �40

  2. This report has been produced as evidence for Unit 9 - 'Financial Services' - ...

    already have your policy, or another company (for the privilege of which you may be charged a penalty by your original company). 3. The annuity pays you a fixed income until you die. The precise amount depends on how long they think you have left to live.

  1. What does Finance involve.

    START-UP COSTS: for the first 2 weeks... Firstly I will have to think about my start up costs. This is when I am firstly opening my shop I will have to buy many things to ensure my salon is up to date.

  2. Investment Portfolio - Shares and other investments

    It is best known in financial markets for structured finance deals. The company has 28 offices and in excess of 1,000 employees worldwide. Although headquartered in Sydney, it has a significant presence in Europe and the United States. Nicknamed the "Mini Macquarie", it is a company frequently compared with larger competitor Macquarie Bank.

  1. ways of finance (bussiness studies)

    The disadvantages it dose not belong to you, only have a small amount of time to use it. The advantages are if there are any problems with the product you do not have to deal with it. An example of leasing a digger for building work or some equipment that you only need one.

  2. Planning the finance for my new business.

    the business, however the money has to be paid back with interest and if it is not paid back there is a risk of losing the property. Retained profits are profits that are invested into the business, this benefits a business because no finance needs to be paid back and

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