Long term finance(repayment in 5 or more years)
Business angels: Affluent individuals who provide financial capital to small start up. Invest in high risk business. ADV: more favorable financial terms. DIS:the angel investors will have control of the ownership in the business.
Individuals investors: Adv: more favorable financial terms. Provide knowledge and personal experience. DIS: share ownership, can be difficult to convince investors and get their trust.
venture capital:financial capital provided to high risk, high potential start up firm or small business. DIV: the venture capitalists may set very high targets for the start up business and are involved in the decision making. AD: they invest in the aim and fund start up business.
Debentures:ADV: the interest arranged is less than the ones in the bank. DISV: documents issued so investors can but and they will receive interest and the repayment of the money they invested
Loan capital:DIV: Mortgage: House/building id the guarantee that the company will pay back loan. Not available for all business. Bank might ask for collateral. Pay interest,.
Issues shares:Limited company. ADv: Do not need to pay interest. DIS: Lose control of the business, very expensive.
grants: Funds usually provided by the government. Business will be expected to write a proposal showing how they plan to use the money. ADV: they do not have to be paid back.
Subsidies:Financial assistance granted by a government, a non governmental organisation, or an individual to support business enterprises that are in the public interest. The aim is to lower the market price.