Chapter 1
1.0. Available Sources of Funding to Hospitality Industries

Introduction:
Hospitality industry in UK has got problems from securing funds through banks which is supposed to be reliable source of business funding. This fact has made it necessary to look beyond banks to assists with the growth of the business. HOSPACE 2013.
Ben McClure, 2015 says “it is necessary that hospitality industry considers only financial funding that will not lead the business into future problems”. As if the industry does not utilize the money it borrows judiciously, it might affect its growth prospects.
The actual funding sources for UK hospitality industries are hereby critically looked into; with pros and cons of the sources.

1.1 Sources of Funding available to Hospitality Industries:
There are two main sources of funding which are generally available to hospitality industries especially chains of restaurants and hotels. These are the internal and external sources. The internal sources are those that can be sources through the business owner, borrowing from relatives and the retained earnings.
Before embark in a business, there could be a saving by the owner to start and run the business with little or no risk. There is tendency to borrow fund from family and friends under mutual understanding whose repayment may not attract interests and with low risks. However, in case the business fails, it may tarnish the cordial relationship. It can as well leads to unnecessary interference with efforts to control the business. To put things right, an agreement can be entered into. Enhanced earning is the ploughing of the profit into the business after running it for a year. The enhanced earning should be after the payment of every deduction and tax. Its advantages lie on its readily availability, cheaper than external equity, no ownership dilution and its positive