Inside Chobham is the name of a carpet and fabric shop located in the centre of Chobham, this research report will identify and analyse various sources of finance which are suitable to fund the expansion plans of it’s owner. It’s situated in a town which is primarily populated by families with an above average household income, which makes it an ideal location for a carpet shop which stocks expensive carpets such as Brintons and Couristan. It has been operating for many years now and has managed to stay afloat during tough economic times, yet the owner believes the business has plateaued and is in need of further expansion to bring in more revenue. In order to do this the owner wishes to open a new retail establishment in Weybridge. The costs
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When a business takes out a loan, it agrees that the amount in question be paid back at a later date with a certain level of interest to be paid on top of the original sum. Banks will usually offer a small business loan in the region of £1,000 to £25,000 for a period that can range between one and ten years. (Anderson, 2015) from the Telegraph writes “Lending to small firms has risen considerably in the past 12 months, with 60pc of loan applications approved in the past three months compared with 45pc a year ago.”. The annual percentage rate that the business will payback on top of their loan can range, but the small business loans from HSBC start at 7.9% (Business.hsbc.co.uk, 2015). The main advantage to this is the access Inside Chobham will have to serious levels of finance, which can make all the difference when funding for expansion. The disadvantage to a loan is that it has to be paid back in full with interest, failure to do so results in the seizure of a business 's assets, which can then lead to …show more content…
An angel investor is a high net worth individual who invests into a business for equity or an agreed upon return on investment. Enterprise editor for the Telegraph, (Burn-Callander, 2015), writes that “ UK angels are making more investments than ever before. The median number of investments per angel is five, up from 2.5 in 2009.”. As for the amount of money paid back to the investor, it is estimated that angel investors make around 32pc per investment (Investmentuk.net, 2015). This is higher than a bank loan but is generally considered to be more accessible to smaller
When a business takes out a loan, it agrees that the amount in question be paid back at a later date with a certain level of interest to be paid on top of the original sum. Banks will usually offer a small business loan in the region of £1,000 to £25,000 for a period that can range between one and ten years. (Anderson, 2015) from the Telegraph writes “Lending to small firms has risen considerably in the past 12 months, with 60pc of loan applications approved in the past three months compared with 45pc a year ago.”. The annual percentage rate that the business will payback on top of their loan can range, but the small business loans from HSBC start at 7.9% (Business.hsbc.co.uk, 2015). The main advantage to this is the access Inside Chobham will have to serious levels of finance, which can make all the difference when funding for expansion. The disadvantage to a loan is that it has to be paid back in full with interest, failure to do so results in the seizure of a business 's assets, which can then lead to …show more content…
An angel investor is a high net worth individual who invests into a business for equity or an agreed upon return on investment. Enterprise editor for the Telegraph, (Burn-Callander, 2015), writes that “ UK angels are making more investments than ever before. The median number of investments per angel is five, up from 2.5 in 2009.”. As for the amount of money paid back to the investor, it is estimated that angel investors make around 32pc per investment (Investmentuk.net, 2015). This is higher than a bank loan but is generally considered to be more accessible to smaller