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Forms Of Finance.

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Introduction

There are a number of finances available for different people and many different things etc. weather it is a housing development are a factory unit you will still be required to sort out a form of finance to construct the building. Buildings are expensive to erect the way they must be built and constructed different people require different things weather it is expensive are not. A Public house is the most expensive house and if you build a replica house it will be the least expensive to erect out of the two. Very few clients would have the total cash available to construct a building. The alternative is PFI which is a system by the government and which enables a contractor erecting a building to his design and the government pays rent over 25-30 years. ...read more.

Middle

there is a limit to the amount you can take out for instance for every �100 you have in the credit union you can take out �1000. Medium term loans- Used for buying equipment, renovations etc. up to �50,000 over 3 years. You would approach a bank for a loan-usually paid back monthly which is called a term loan. Same amount every month and pay a bit of capital and less interest. Higher purchase: for equipment, machinery etc. Using the purchased item as security and if you stop paying they take the item back off you again. You would have equal payments weekly or monthly it would be arranged by the supplier. The repayments are worked out something similar to a loan, very high interest approx 18%. ...read more.

Conclusion

Company has a valuation of �100 million (shares worth �1 each on market) has a rights issue allowing share holders to buy a shares at 95p. A private can also go public it can float on the stock market. Venture capital- there are some tax incentives investing in new companies, often the people investing in the companies are called venture capitals. They are either wealthy individuals are companies who gain a share holding in return for investing money. Grants are sometimes available- they are available from centre of local government to help industrial developments. Grants are often given to build or to put up buildings in certain areas e.g. inner-city. As an alternative cheap loans would also be available with a reduced rate. Taxation- governments can help business by reducing tax provided that they are helping to reduce unemployment in some case. ...read more.

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