Funds available are likely to be limited - Personal Funds, Asset no longer available to the business - Sale of Assets, The business may lose out on alternative investments - Retained Profits, This source of financing only available to LLC's - Share Capital, Businesses may have to offer collateral - Bank Loans, Businesses can pay large amounts of interest on very long-term loans - Mortgages, Fees are very high - Overdraft, Only available for short term - typically 90 days - Trade Credit, Unfamiliar source of finance for many managers - Crowdfunding, The business loses a % of the debt - Debt Factoring, Only small sums of finance may be available - Microfinance Providers, Potential loss of control over decisions - Business Angels & Venture Capitals,
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Disadvantages of Sources of Financing
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Mtomlinson2
12th Grade
Business
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