INTRODUCTION
This paper will identify the different sources of finance that are available for Spicy Jerk Center. Some of the sources of finance that are available are retain capital, short/medium/long- term, cash management, equity financing and third party financing. The sources of finance are defined as the venues for obtaining funds that come from outside an organization. External sources of finance might include taking on new business partners or issuing equity or bonds to create long term obligation, or commercial paper to take on shorter term debt. (Businessdictionary.com, 2015). Scribd, (2015). Stated that depending on the amount of capital required and the term for which it is needed. Without cash, the business would not be able to survive. With many possible uses of finance - wages, advertising, expansion, paying the interest on loans, etc - we should consider the various sources of finance available to businesses. Some of the different sources of Finances available are:
1. Long Term Bank Loans products normally have lower interest rates than short terms loans, credit accounts and credit. Kokenmuller, N. (2015)
2. Venture Capital is not a funding loan scheme; there is no repay schedule; which means you …show more content…
With this in mind, an Equity financing was considered but to sell the ownership interest to raise funds for business purposes. The sale of other equity or quasi-equity instruments such as preferred stock, convertible preferred stock and equity units that include common shares and warrants. (Staff, 2003). This research shows that long-term Bank loans are preferred choice since it has fixed interest rates that translate into consistent monthly payments and high predictability. This predictability makes it easy to budget the operational income that you will need to make the
This paper will identify the different sources of finance that are available for Spicy Jerk Center. Some of the sources of finance that are available are retain capital, short/medium/long- term, cash management, equity financing and third party financing. The sources of finance are defined as the venues for obtaining funds that come from outside an organization. External sources of finance might include taking on new business partners or issuing equity or bonds to create long term obligation, or commercial paper to take on shorter term debt. (Businessdictionary.com, 2015). Scribd, (2015). Stated that depending on the amount of capital required and the term for which it is needed. Without cash, the business would not be able to survive. With many possible uses of finance - wages, advertising, expansion, paying the interest on loans, etc - we should consider the various sources of finance available to businesses. Some of the different sources of Finances available are:
1. Long Term Bank Loans products normally have lower interest rates than short terms loans, credit accounts and credit. Kokenmuller, N. (2015)
2. Venture Capital is not a funding loan scheme; there is no repay schedule; which means you …show more content…
With this in mind, an Equity financing was considered but to sell the ownership interest to raise funds for business purposes. The sale of other equity or quasi-equity instruments such as preferred stock, convertible preferred stock and equity units that include common shares and warrants. (Staff, 2003). This research shows that long-term Bank loans are preferred choice since it has fixed interest rates that translate into consistent monthly payments and high predictability. This predictability makes it easy to budget the operational income that you will need to make the