94035
Description
Mind Map by Charlotte Webber, updated more than 1 year ago
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Created by Charlotte Webber
about 11 years ago
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Raising Finance
- Retained profits-
profits earned by a
business and are kept
than distributing the
profit to the owner of
the business
- Advantages
- owner in charge of
how they're used
- low costs and flexible
- owner in charge of
how they're used
- Disadvantages
- need to commence
trading and exceed
break even output
before profits can be
earned
- does take time
- need to commence
trading and exceed
break even output
before profits can be
earned
- Advantages
- Venture Capital- invest in large sums of money
- Advantages
- Large
amounts
of cash
- potential large amounts of money
- Large
amounts
of cash
- Disadvantages
- only invest
in low risk
businesses
- Time consuming
- only invest
in low risk
businesses
- Advantages
- Bank overdrafts-
agreed amount of
excess money that
can be with drawed
when account is
empty
- Advantages
- Instant finance
- Students have no interest
- Instant finance
- Disadvantages
- Repayment on demand
- Higher interest rates than loads
- Repayment on demand
- Advantages
- Bank Loans- lent of
money from a bank over
a set period of time
- Advantages
- Long term
- Fixed repayment
periods
- Instant finance
- Long term
- Disadvantages
- Interest charge
- provide a business plan
- Interest charge
- Advantages
- Loans from family and friends
- Advantages
- no interest
- pay back anytime
- no interest
- Disadvantages
- not high amounts
- strain on relationships
- not high amounts
- Advantages
- Credit Card-
credit from bank
- Advantages
- 30-40 free day credit
- quick and easy
- 30-40 free day credit
- Disadvantages
- Receive penalties
- Interst
- Receive penalties
- Advantages
- Share
capital- sell
percentage of
business to
invest
- Advantages
- large sums of money
- no interest
- large sums of money
- Disadvantages
- Lose control
- share holders
expect share of
profit
- Dividend
- Dividend
- Lose control
- Advantages
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