Working Capital - Money available for immediate use to fund day to day
Pros - Efficient management of cash is good practice
Cons - Money is not always available
-Must have sufficient stock to meet customer demand

Making deals with provider without paying upfront when receiving goods

Pros - Can pay provider after selling the goods, improves credit rating

Cons - Can damage credit if payment is late or overdue, business can decline at any time but provider still needs payment

Sale and leaseback (Santiago)

Pros:

• Firm can be more flexible as new and more efficient assets can be leased.
• Ownership of many assets leads to cost: e.g maintenance.
  
  

Cons:

• In long term you usually pay more by renting.
• Can reduce the value of the firms assets that can be
  used as security against future loans.
• May eventually loose use of the asset when lease ends.

Share Capital: (Santiago)

Pros:

• The most important reason for corporations to issue shares is to raise money
• Share issue is flexible
• A corporation can repurchase issued shares
  
  

Cons:

• It costs money to issue stock.
• Often, it costs more to raise money from issuing shares than it costs to borrow money.
• The value of existing shares, will usually cause the share price and dividends per share to fall

Loan Capital(Santiago)

Pros:

• Purchase without liquidity
• Provides capital for operations
• Better interest rates
• Flexibility
• Cash discount
  
  

Cons:

• Security needs
• Partial funding requirement
• Strict repayment schedule
• Payment penalties and charges
• Increase compliances.

Grants:(Santiago)

Pros:

• Receiving money without doing anything.
  
  

Cons:

• Sometimes there are string attached to the grants, therefore you can't do whatever you want with them.
• You need to time consuming research about the person/company/bank that gave you the grant .

Debentures(Santiago)

Pros:

• Debentures ensure a higher position for repayment as a creditor.
• Valuable financial protection
• encourage long-term funding to grow a business.
• Debentures usually provide a fixed rate of interest for the lender.
  
  
  

Cons:

• no flexibility in their obligation to make interest payments on the debenture.
• Restrictions imposed by securing the debenture with an asset
• lender loses their right to vote and take a share of company profits.

venture capital(Santiago)

Pros:

• Large amounts of capital can be raised
• Increased publicity and exposure
• Help managing risk is provided
  
  

Cons:

• Founder ownership is required
• Overall costs of financing is expensive
• Loosing the business for founders
  

Hire purchase(Santiago)

Pros:

• Spread the costs of high ticket items
• You will own the asset after paying the last instalment loan, which can be more beneficial than leasing
• You will have immediate use of the item once the agreement of the vendor has been signed off.
• It is very easy to obtain
  
  

Cons:

• Contracts are usually fixed, therefore if you have financial difficulties in that period you may lose the asset.
• You will end up paying more for whatever it's you’re hiring
• Because you don't own the asset, it won’t be protected if you’re made bankrupt.

Subsidies
Pros

• Lowering prices and control inflation to keep prices from booming
• Prevent business from declining in the long run
• Greater supply of goods as people would need basic neccessties and government needs them to provide
  
  

Cons

• Higher taxes for people to subsidies
• Shortage of supplies due to the lower price and high demand making the suppliers hard to meet the demand

Business Angels

Definition: Business professionals looking to invest in businesses and provide their expertise in actively running the business.

Pros:

• Large amounts of capital can be raised.
• Publicity and exposure.
• Help from experts with running areas of the business that may need improvement.
  
  

Cons:

• Often large percentages of the business are given away.
• Owners may lose a lot of control over the business.