Premium Essay

Sadasderer

In:

Submitted By phananh090195
Words 701
Pages 3
I.INTRODUCTION

II. THE SOURCES OF FINANCE
Money is very important to the business. The sources of finance can get by many ways from Government aid, business owners, others way of borrowing and borrowing from the bank. With my company, the director can borrow £250000 from the bank or his acquaintances and he can maintain company by his money.
When you take out a bank loan, you have complete control over what you do with the money. Paying back the loan also is responsibility, and failure to do so can result in the bank foreclosing on your business. This is different from equality financing, for example through which investors take part ownership of your business. In that are not personally liable if they want to cash out, and it’s up to them to find a buyer. Nevertheless, you also lose some of your business control. Moreover, you can take a loan easily from the bank because not many people borrowing actually. However, banks normally require a lengthy and through application process before they will approve you for a loan. Especially in the case of small business, which are often fail, banks want more details about yours business plan before they are confident about lending you money. An issue to keep in mind is that interest rates and other terms can change during the repayment period, making the loan difficult to pay back. In the province of Da Nang city now has a lot of banking support for business loan such as Vietcombank, Vietinbank, Agribank and so on.
One of the biggest advantages of borrowing money from acquaintances is that you likely to pay a lower interest rate than you could get at a bank or credit union. The acquaintances may be willing to negotiate favorable repayment terms for your new business loans. Another advantage of getting a loan from acquaintances is that you do not have to worry about a long and complicated loan application and approval

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