# data[].attributes.body
Theses are wealthy individuals that invest into companies with large sums of money usually ranging from 10k to 750k. They invest into newer growing business

+ it a lot of money for a smaller company earlier on

- Businesses are unlikely to be suitable for investment by a business angel unless certain conditions are fulfilled.

# data[].attributes.body
Monies, usually in the form a loan, that a business owner gets from either family members or friends in order to help finance their startup or growing business. The most common source of debt financing for start-ups often isn't a commercial lending institution, but family and friends.

+low or no interest
+may lend for longer periods of time
+lenders may have useful skills to offer

-might need more then the lender can offer
-lenders might want to get involved
-may cause potential strains on relationships

# data[].attributes.body
A business obtains goods and services from another business, but does not pay for them immediately. Instead, the supplier is paid a month or two later.

Advantages:
- popular way of managing the day to day financial requirments of the business.
-  Increased sales if they don't pay cash immediately.

# data[].attributes.body
Share capital is the money invested into the company by shareholders.
BENEFITS
- Source of long term finance which will support the business
- Limited liability for any issues
- Protected by the amount invested in the company (investors can't lose more money than they invested)
DRAWBACKS
-  Lose shares of the company
-  Business loses more control each time they sell shares
- The stock price can fall if lots of shares are sold.

# data[].attributes.body
A method of financing the purchasing of equipment such as machinery, IT and motor vehicles.

If they lease equipment they do not own it but they may be able to buy it at the end.

There are various forms including contract hire, commonly used to finance fleets of vehicles. .

Advantages:
1. No capital overlay --> can be a big help to cash flow.
2. Don't have to pay full cost upfront. So you don't have to borrow money.
3. You have access to higher standard of  equipment which may be too expensive to straight out buy.

Disadvantages:
1. You cant claim capital allowance if leased for less than 5 years.
2. It can workout more expensive than if you straight out buy the assets.
3. When you lease something you don't own it.

# data[].attributes.body
A sum of money given to an individual or business for a specific project or purpose. A grant usually covers only part of the total costs involved.

Ads
- you don't have to pay anything back so its basically free
- widely available
- funding is available in a wide range of categories

Dis
- needs a convincing proposal and a solid plan
- come with strings attached, cannot use money however you want
- most are short term

# data[].attributes.body
Profits earned by the business that are kept in the business rather than distributed to the owners of the business (as dividends or drawings).

Advantages:
- Low cost
- Flexible
- The owners are in charge of how they are used

Disadvantages:
- A start-up business needs to commence trading and exceed the break-even output before profits can be earned, which might take some time
- Danger of hoarding cash
- Shareholders may prefer dividends if the business is not earning a sufficient ROCE
- High profits and cash flows would suggest the business could afford debt (higher gearing)

# data[].attributes.body
Bank loans are a form of long term finance where interest rates are set out in advance

Advantage
+ There is a lower interest on bank loans than a bank overdraft
+ The loan is not repayable on demand, it can be up to 3-10 years
+ While you must pay interest on your loan, you do not have to give the lender a percentage of your profits or a share in your company.
disadvantage
- usually requires security or collateral, often harder to arrange
- interest is paid on the full amount- higher interest and not very flexible
- if a business collapses and can’t pay the loan, the individual will be liable for that loan :(

:):):):):):):)

# data[].attributes.body
Individuals can borrow money from unrelated individuals or "peers" Peer to Peer Lending without going through a traditional financial intermediary such as a bank or other traditional financial institution. this lending takes place online on peer-to-peer lending companies. Many use abbreviation "P2P" when in discussion.

BENEFITS
-  Faster funding
- Higher returns to the investors
- Lower interest rates that attracts everyday investors and borrowers from all over the country. (Due to the greater competition between lenders)

DRAWBACKS:
- credit risk (lack of privacy)
- No insurance/government protection
- Legalisation (Some jurisdictions do not allow peer-to-peer lending)

# data[].attributes.body
venture capitals look to invest larger sums of money in return for a share of a company (usually a controlling stake of over 50 %) There is a substantial amount of risk involved an it is usually undergone to start up a new business/ help an expanding business.

Advantages

1.Helps new businesses start and improve.
2.Financially backs businesses that are expanding
3.Can help starting businesses make crucial decisions for development.

Dis advantages

1. Some unsuccessful starting businesses can waist the venture capital (waisting money)
2. Some people lending the money may want to be involved.
3.

# data[].attributes.body
Once a start-up has survived the set-up stage, it is likely to have assets. These can be sold to raise cash. Once sold, the business loses the use of the asset, but has the use of the cash. It makes good business sense for businesses to sell underused or surplus assets, as the cash generated can help finance development without extra borrowing.

3 BENEFITS -
- Costs paid for the asset are depreciable.
- No legal liability for the corporation prior to the purchase.

3 DRAWBACKS -
- Rehire the employees. The employees don't automatically roll over to the new owner unless he rehires them.
- Must pay sales tax on furniture, fixtures and equipment.
- No established credit. When you're starting a new business, unless you have had a prior business with a good credit history, initially it will be harder to get credit.

# data[].attributes.body
A common source of short term borrowing for a small business. The bank allows this business to overdraw up to an agreed level. (Overdraft limit).

BENEFITS:
• Flexible source of finance: the business borrows only the amount actually needed rather than taking it a loan.
• Greater certainty of funding provided terms are met and lower interest than a bank overdraft.
• . Relatively easy to arrange.

DRAWBACKS:
• Attract a higher rate of interest cost than a bank loan.
• Debtor’s collection becomes lethargic.
• Risk of seizing.
• Risk of reduction in limit.