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Financing a new business

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Introduction

When you start a business the options available to you are limited, due to the risk factor (i.e. likelihood of failure). You need to understand the following: 1. The options available 2. The main advantages and disadvantages of each option 3. Any other types of support (financial and Non financial) available 4. Use this information to choose the best option for a business. Term Definition Overdraft When you owe bank money and your balance is in minuses. ...read more.

Middle

Government/development agency grants When the government gives a student a loan which they will pay back once they have work. Redundancy payments When you become redundant and the company you worked for gives you a couple weeks of pay after making you redundant. Savings When you have set aside some money for when you need it. Main advantages and disadvantages Term advantages disadvantages Overdraft When you need extra money you can borrow without having to pay interest. ...read more.

Conclusion

Loans from friends and family Easy to get money and no interest needs to be paid. They could suddenly demand their money, borrowing from a bank means this will not happen. Government/development agency grants Easy way to get money if needed when studying. Must be paid back when starting a job which means it will be harder for you to get a place to live. Redundancy payments Paid for work you won't do. You have no job. Personal Savings Can be used in emergencies Requires money to be put aside in the first place. ?? ?? ?? ?? Financing a new business - the options ...read more.

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