Business Financing

Jun 27th, 2015
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Abraham Lincoln University
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To achieve this, small businessmen must not only have an understanding of how to reach the sources of finance available to them, but must also know how to capitalize on the use of these sources in order to reduce the risk factor. This Problem Solver will give you some reasonable pointers in this regard. Fundamental to the approach will be the fact that the development of small businesses should be based on sound business principles and disciplines, thereby assisting in the efficiency and prof

Word Count: 1151
Showing Page: 1/7
Managing FinanceSources of FinanceContents PagePage 1. Introduction 32. DefinitionsBank loan 3Long term loan3Short term loan 3Interest 3Retained earnings 4Organic growth 4Joint venture 4Issue shares43. Case 144. Case 255. Case 356. Case 467. Conclusion78. Reference and Bibliography 7IntroductionIn this assignment we will be looking at different sources of finance available for different type of business. Also will be looking at the definitions of different type of sources of finance, the advantages, disadvantages and also giving reasons to why different sources of finance was chosen for the given case studies. Types of sources of financeBank Loan is a long term loan and will often be for large amount of money for starting up a business or to expanding. Business will agree with the bank to pay installment monthly fees with interest charge.Long term Loan is a loan which is often being for a large sum of money and usually the payment period is more than 15 years. Usually is used for starting up new business, for expansion, buying new fixed assets for the business. Loans are usually paid on a monthly installments plus agreed fixed interest charge.Short term loan is loan that is for a small amount within the period of 5 years, plus agreed interest charge.Interest Banks provide services

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