My brilliant padlet by Riki VAN THILLO https://padlet.com/vant49771/o6rs5qwsve35md65 Made with a bold sensibility en-us 2021-12-01 01:28:13 UTC 2021-12-01 01:38:42 UTC hello@padlet.com Disadvantage https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921739294 - Higher interest rates
- Difficult to calculate borrowing costs
-The bank has the right to ask for repayment of your overdraft amount at any time]]> 2021-12-01 01:30:47 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921739294 Advantage https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921740310
  • Flexible - you only borrow what you need at the time which may make it cheaper than a loan
  • Quick to arrange

    • ]]>     2021-12-01 01:31:28 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921740310     Definition https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921740745 permission for the transaction to go through when an account lacks the funds to cover a withdrawal (has to pay interest and one-time insufficient fund fee)

    ]]>     2021-12-01 01:31:45 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921740745     Disadvantage https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921740773 They impose fees and penalties if you pay them lateLoss of suppliersCash flow difficulties]]> 2021-12-01 01:31:45 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921740773 Definition https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921741106 Allows a business to raise funds based on the value owned by their debtors. The factor will buy the debts.

    ]]>     2021-12-01 01:31:56 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921741106     Definition https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921741204 A subsidy is a quantity of money given directly to companies, organizations, or individuals by the government.

    ]]>     2021-12-01 01:32:00 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921741204     Definition https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921741273 renting 

    ]]>     2021-12-01 01:32:03 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921741273     Advantage https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921741340 Discount for fast payments
    Minimal cash outlay (doesn’t have to spend loads before selling)
    Guaranteed supply of goods

    ]]>     2021-12-01 01:32:06 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921741340     Defintion https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921741382 Financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.

    ]]>     2021-12-01 01:32:07 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921741382     Definition https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921741488  business person with a lot of money who provides financial banking for small startups or entrepreneurs 

    ]]>     2021-12-01 01:32:11 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921741488     Defenition https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921741895
  •  Arrangement for the purchase of supplies without immediate payment

    • ]]>     2021-12-01 01:32:27 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921741895     Disadvantage https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921742424
  • Receive 90% of the money owed
  • Not good if the company has a lot of customers with poor credit ratings

    • ]]>     2021-12-01 01:32:45 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921742424     Advantage https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921742870
  • Improved cash flow
  • Immediate source of finance

    • ]]>     2021-12-01 01:32:59 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921742870     Disadvantage https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921743355
  •  Higher taxes 
  •  Product shortages (When the government subsidizes some product, it causes the price to go down and consumption to go up.)

    • ]]>     2021-12-01 01:33:11 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921743355     Definition https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921743530  loan for asset 

    ]]>     2021-12-01 01:33:18 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921743530     Advantage https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921743597
  • Lowering prices and controlling inflation 
  • A greater supply of goods: Governments want to increase the access of their population to Goods & Services such as Water, Food, and Education.
  • Preventing the long term decline of industries: There are many industries that should be kept alive and functional, such as fishing and farming because they are essential to support a population. Many new and fast-growing industries may also benefit from being subsidized.

    • ]]>     2021-12-01 01:33:21 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921743597     Defintion https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921743642 form of stock payment or loan ]]> 2021-12-01 01:33:23 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921743642 Definition https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921743724 permanent shares 

    ]]>     2021-12-01 01:33:26 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921743724     Disadvantage https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921743956
  • No ownership-  At the end of the leasing period, the lessee doesn’t end up becoming the owner of the asset though quite a good sum of payment is being done over the years towards the asset.
  • The lessee remains responsible for the maintenance and proper operation of the asset being leased.

  • Complex process to get a lease (many documents)

    • ]]>     2021-12-01 01:33:36 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921743956     Definition https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921744000 loan on a premise ]]> 2021-12-01 01:33:37 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921744000 Definition https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921744113 Money put in the business by the owner themselves. Personal funds is the money that one already has saved up, or has acquired from somewhere else. 

    ]]>     2021-12-01 01:33:41 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921744113     Definition https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921744206 2021-12-01 01:33:45 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921744206 Definition https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921744312
  •  the percentage of net earnings not paid out as dividends, but retained by the company to reinvest into the business, or to pay off debt.

    • ]]>     2021-12-01 01:33:49 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921744312     Advantage https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921744426
  • Allows businesses to invest into good quality assets

  • Helps businesses maintain a steady cash flow as they don't have to make a large one time payment, it is spread out over time. 

    • ]]>     2021-12-01 01:33:53 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921744426     Disadvantage https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921745004 - Loss of ownership - Generally need to give away ownership for funding.]]> 2021-12-01 01:34:14 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921745004 Advantages https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921745291
  • Rapid growth - Quickly create and expand the business

  • Quick market share

    • ]]>     2021-12-01 01:34:25 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921745291     Disadvantage https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921746022 - not suitable for investments below $10,000 or more than $500,000
    • - takes a long time to find an angel investor
    • - have to give up a share of the business. 
    • - less structural support available from a Business Angel than an investing company. 
    ]]>     2021-12-01 01:34:53 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921746022     Advantage https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921746408
  • They are free to make investment decisions quickly
  • - They don’t need collateral (personal assets) 
  •  - no repayments or interest or delayed repayment
  • - Access to the investor’s sector knowledge and contacts

    • ]]>     2021-12-01 01:35:08 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921746408     Disadvantages https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921746956
  • If you fail to repay the loan, the lender can take possession of assets of the business or shutdown the business
  • If the interest is variable you may end up paying more than your loan
  • Possible high interest rates

    • ]]>     2021-12-01 01:35:28 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921746956     Advantage https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921747177 Repaying the loan is spread out over time into smaller amounts]]> 2021-12-01 01:35:38 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921747177 Disadvantage https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921747946
  • Interest is payable
  • Increases risk of company

    • ]]>     2021-12-01 01:36:06 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921747946     Advantages https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921748246
  • Lower interest rates compared to overdrafts
  • Payable in the remote future
  • Cannot be sold on stock exchange
  • Not considered a share so does not dilute shareholder equity

    • ]]>     2021-12-01 01:36:18 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921748246     Advantages https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921748248
  • Most people do not have enough money to pay in cash so a mortgage makes it possible
  • You only need to bring in a small down payment
  • Reduced in tax vs paying by cash
  • Having a mortgage on your home also means you’ve got more liquidity and less at risk
  • Forced to save each month

    • ]]>     2021-12-01 01:36:18 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921748248     Disadvantages https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921748471
  • Overall pays more due to having to pay interest vs paying by cash.
  • Sellers prefer cash > mortgage has less chance of backing out
  • You do not own the house till loans have been paid off. 
  • You need to qualify for a mortgage and not everyone does. 
  • 30 years of monthly payment
  • You can lose your home if you fall behind on payment

    • ]]>     2021-12-01 01:36:25 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921748471     Advantages https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921748590
  • If a business fails, the owner could lose their home or other personal assets
  • Owner will have to develop their own contacts and developing opportunities

    • ]]>     2021-12-01 01:36:30 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921748590     Disadvantages https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921749009
  • Does not need to be paid back (permanent)
  • Can raise large amounts

    • ]]>     2021-12-01 01:36:46 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921749009     Advantages https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921749499
  • Selling more shares can dilute ownership for existing shareholders
  • Costly to set up sale

    • ]]>     2021-12-01 01:36:58 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921749499     Disadvantages https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921750116
  • If a business fails, the owner could lose their home or other personal assets
  • Owner will have to develop their own contacts and developing opportunities

    • ]]>     2021-12-01 01:37:21 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921750116     Disadvantages https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921750592
  • No established credit
  • Negotiate transfer of lease and contacts 

    • ]]>     2021-12-01 01:37:39 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921750592     Advantages https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921750902
  • No liabilities for employees 
  • Cost paid for assets are depreciable 

    • ]]>     2021-12-01 01:37:51 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921750902     Disadvantages https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921751290
  • Lose value over time
  • Dividends = money paid to shareholders
  • Higher taxes = (but there is a possibility of tax breaks)

    • ]]>     2021-12-01 01:38:00 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921751290     Advantages https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921751724
  • Growth = improvement to existing product, market research, or develop new product.
  • Investment = source of further earnings

    • ]]>     2021-12-01 01:38:13 UTC https://padlet.com/vant49771/o6rs5qwsve35md65/wish/1921751724