Source of Finance Report - 3389 Words

Source of Finance Report I’m writing to you to give you more advice and guidance about which sources of finances should you go for. I’m going to give you a detailed analysis of the advantages and disadvantages of each source that will be appropriate for your business. External and Internal Sources of Finance External sources of finance are any sources of capital that can provide small business capital. For example a major external source are banks who can provide capital to your business to start up, the running operations of your business and for your company’s expansion. Internal sources of finance are any capital that is found within your business. For example you can retain yours profits for backs profits for business’s activities†¦show more content†¦To get a bank loan, you and your business partner need have good credit scores, if you don’t have good credit scores. Then the bank will be more reluctant to lend you reasonable bank loan. Also if you and your business partner fail to repay the loan, the bank will demand that you sell some of your assets (property or car). I would suggest that the owners of Caveman Brewery pick a bank loan that they can afford to pay back. It would less stress on the owners as the bank is not chasing them for payment. Capital Capital is essential for your business’s growth, this enables your business to pay off debts, company’s expansion and be able to compete in competitive market. Venture Capital Another of form of gaining capital is venture capital. Venture capitalists are a panel of wealthy investors who can provide capital to your business so you and your business partners can carry out your business’s activities. â€Å"Venture capitalists can introduce your business to an extensive network of strategic partners both domestically and internationally† and they can help advertise your business to gain the public attention. Advantages The major advantage of venture capital that it can provide a source of capital into your business. For example you and your business partner have a business idea but don’t have enough capital to bring the idea into the brewery market before any of your competitors enters theShow MoreRelatedGfsgsdf Hshsdfshfd Sdhgw1479 Words   |  6 Pagesunderstanding of the purpose of managing resources effectively, not only in relation to human resources but also in terms of physical and technological resources. Learners will also gain an understanding of how an organisation can gain access to sources of finance, both internally and externally and be able to interpret financial statements. There are clear links between this unit and many of the other units; it serves as a useful introduction to areas that may be covered in depth in further units. Read MoreManaging Financial Resources Essay examples1182 Words   |  5 Pages 2. Identify the sources of finance available to a business.(P1.1) 3. Assess the implications of different sources.(P1.2) 4. Select appropriate sources of finance for a business project. (P1.3) 5. Assess and compare the costs of different sources of finance (P2.1) 6. Explain the importance of financial planning.(P2.2) 7. Describe the information needs of different decision making.(P2.3) 8. Describe the impact of finance on the financial statements.(P2.4) Read MoreSources Of Finance For Synergy International Limited1627 Words   |  7 PagesThis report will research available sources of finance for Synergy International Limited to enable the company to invest in new machinery, at a cost of approximately  £225,000, in order to manufacture mobile phone covers for the Samsung S7 Edge. Also included in this report, are the information needs of the different decision makers. There are long term external sources of finance that Synergy International Limited could access; they could issue preference or ordinary shares although there wouldRead MoreP4 Describe Sources of Internal and External Finance for a Selected Business.869 Words   |  4 PagesReport to: Head of Finance Report From: Monaj Gurung Date: 23rd October 2012 Title: sources of internal and external finance for Waitrose Source of Finance All business needs money in order to operate properly. Finance simply means the management of some amounts of money. And source of finance is generally the place where money comes from. Example Waitrose gets money by selling their products to the customers and hence customers are the different classes Internal and External source of financeRead MoreManaging Financial Resources and Decisions Essay1355 Words   |  6 Pagesimplications of finance as a resource within a business 2 Introduction In this essay I will be discussing and understanding of where and how to access sources of finance for a business, and the skills to use financial information for decision making.    Finance is essential for a business’s  operation, development and expansion. Finance is the core limiting factor for  most businesses and therefore it is crucial for businesses to  manage their  financial resources properly. Finance is available toRead MoreIf Assignement1521 Words   |  7 Pages ACADEMIC YEAR 2013/2014 Bachelor of Science (Hons) Actuarial Science Bachelor of Science (Hons) Financial Mathematics YEAR 3 TRIMESTER 2 UKFF 3243 INTERNATIONAL FINANCE ASSIGNMENT (Question) ------------------------------------------------- ------------------------------------------------- Pick a multinational enterprise (MNE) from Table 1 below and answer ALL questions. Table 1: List of Multinational Enterprises | Acer Inc. (Taiwan) | Aeon Co. Ltd. (Japan) | Adidas AG (Germany) | CarrefourRead MoreThe Key Departments Of The Business1529 Words   |  7 Pagessupports the business to build and embellish in all worldwide markets. This report will consider what the key departments do for the business, in addition, this report will enlighten the research procedure used and significant complications which have been encountered throughout. Key departments within businesses Departments in businesses all partake in important roles, departments such as human resources, accounting and finance, production amongst others remain vital to the company so it can work progressivelyRead MoreThe Key Departments Of The Business1529 Words   |  7 Pagessupports the business to build and embellish in all worldwide markets. This report will consider what the key departments do for the business, in addition, this report will enlighten the research procedure used and significant complications which have been encountered throughout. Key departments within businesses Departments in businesses all partake in important roles, departments such as human resources, accounting and finance, production amongst others remain vital to the company so it can work progressivelyRead MoreCU2691 Support Individuals To Manage Their Finances937 Words   |  4 Pagesï » ¿CU2691 Support Individuals to Manage Their Finances. 1. Know how to access information and advice about financial affairs. 1.1 Identify sources of information and advice about methods and services for managing personal finances. Citizens Advice Bureau Financial Services Financial Advisor (Bank) Internet websites Council Offices 1.2 Identify sources of information and advice about benefits and allowances. County Council Benefits Office www.gov.uk/browse/benefits/entitlement 1.3 Describe the role