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Types of Finance (Long Term (Owner's Equity (Disadvantages (Additional…

- - - - Additional owners can now share profits
      - Additional owners can take control
    - - No need to pay it back
      - Additional owners may have different skills
  - - - Can be used to pay off debts
      - Capital is available for growth
    - - Only gets money through growth
      - Higher taxes
  - - - Gives you a budget
      - Lower Rates
    - - Have to be paid back
      - High Interest Costs
      - Restricts Cash Flow
  - - - Able to use an asset without making Capital Investment
      - Easy Source of Finance
    - - High Costs
      - Loss of Moratorium Period
- - - - Flexible
      - Low paperwork
    - - High interest rates
      - High seizing risk
  - - - Very flexable
      - Able to expand your business
      - Easy to repay
    - - High risk
      - High costs
  - - - No cash needed
      - More sales
    - - High costs
      - Potential for bad debt