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Chapter 3.1 (Factors inflencing finance choice (Use and time period…

- - - - Bank overdrafts
      - Trade credit
      - Debt factoring
    - - Hire purchase and leasing
      - medium-term bank loan
    - - Debt finance
        
        Long-term loans from banks
        
        Debentures
        
        Advantages: ownership does not change, loans will be repaid eventually, gearing of company increases
      - Equity finance
        
        Advantages: permanent capital, dividens not have to be pid annually
      - Other souces
        
        Grants
        
        Venture capital
        
        Business angels
        
        Advantages: can make an investment decision without difficult assessments, better local knowledge
        
        Disadvantages: business owners still need to gain investors' trust
        
        Subsidies (time period fixed by government)