Various sources of finance Essay Example for Free

Various sources of finance EssayIn addition to banking concern gives there is a range of alternative sources of finance available. At same time, a loan from a bank might not be the top hat way forward for every bank line.THESE ARE THE MOST POPULAR ROUTES1. Own finance one can choose to start his protest business by using his own financial resources. This may be from savings accounts or other investments that he has. Typically, it is not advised that one should fund his start-up from personal overdrafts, loans or credit cards as these are not necessarily tailored to your business needs or requirements. 2. Family and friends You may have family and friends who wish to invest in your business. This is often convenient and may allow you to get finance on favorable terms. However, make sure you have a formal agreement of loan terms in place so you or your family and friends are not left unprotected in the event that you are unable to repay the loan.3. Banks The about common fo rms of finance used by start-ups areBusiness overdrafts Banks offer overdrafts as a form of short-term finance. These are available to companies that have business current accounts. They are a good way of covering any fluctuations of money coming in and issue out of your business. Term loans Loans are intentional to aid you buy equipment and supplies for your business. They are best if you need to buy fixed assets, such as machinery or office equipment, where the amount you need is not going to change.4. Grants These are a good option for businesses looking for financial assistance for specific projects. mostly, funding comes from EC and UK government sources, including local authorities, charitable trusts,( e.g. prince Charles trust funds) and corporal sponsors. Further on www.grantnet.com5. Loans It is not just banks that can provide a loan. Business support organizations such as enterprise and development agencies can helpbusinesses looking for loans. The National Enterpr ise Network is a good example http//www.nationalenterprisenetwork.org/6. Business Angels Often high net worth individuals, Business Angels invest in high growth businesses on their own or as part of a syndicate. In addition to providing finance, Business Angels often make available to companies their own skills, experience and contacts. If you are interested in finding out if a Business Angel is right for you, visit http// www.businessangel.org