Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
6Activity
0 of .
Results for:
No results containing your search query
P. 1
Sources of Finance

Sources of Finance

Ratings: (0)|Views: 514 |Likes:
Identification and evaluation of sources of Finance
Identification and evaluation of sources of Finance

More info:

Published by: Rashida Yvonne Campbell on Oct 17, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

10/13/2014

pdf

text

original

 
HND Business
April – July 2010
Managing FinanceSources
of Finance Assignment 1
(Rashida Yvonne Campbell)
1
 
C ontents Page
Page
1.
Introduction 32.DefinitionsBank loan 3Overdraft3Long term loan3Medium term loan3Short term loan 3Interest 3Retained earnings 4Organic growth 4 Joint venture 4Bonds4Shares4Venture Capitalist5Government grants5Sponsorship5
3.
Case 16
4.
Case 27
2
 
5.
Case 38
6.
Case 49
7.
Conclusion10
8.
Reference and Bibliography 11
Introduction
 This assignment studies the different sources of finance available forvarious types of businesses. Firstly it is important to understand thedefinitions of different types of sources of finance, the advantages anddisadvantages before deciding which one is most suitable giving reasonsto why different sources of finance was chosen for the given case studies.
Types of sources of finance and their definitions
 The
time
periods given below are approximate. It is important to notethat each lending organization will specify the exact number of years theloan duration will be for each category of short, medium and long term.
Bank Loans
– are in the form of medium to long term loans (5 years ormore) and will often be for large amounts of money for starting up abusiness or to expand. Businesses will agree with the bank to pay amonthly installment with fees and interest charges. Banks usually requiresome form of security against the loan. The interest rate charged maybefixed or variable. Businesses can request for fixed interest rates (or shoparound to find the best deal) this will provide an easier repaymentschedule and businesses can plan and manage their finances better if therate is fixed.
Bank Overdraft
– is a short-term loan and could be repayable within onemonth and less than 12 months. Interest rates are usually high and incur
3

Activity (6)

You've already reviewed this. Edit your review.
royalcasino3 liked this
1 thousand reads
1 hundred reads
Areez Khan liked this
Vivyan Chua liked this
gullybaba liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->