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Sources of Finance - Coggle Diagram

- - - - easy and quick to access
      - can get a significant amount of money at one time
    - - have to pay interest
      - difficult for a new business to access
  - - - does not need to be paid back
      - available to small businesses
    - - business needs to meet certain criteria
      - it is time-consuming to apply for grants and to complete the paperwork
  - - - expensive assets can be purchased and paid back over time
    - - interest is charged on hire purchase items
      - equipment is not owned until the final payment is made
- - - - quick and convenient
      - doesn’t require borrowing money
      - no interest payments to make
    - - the owner might not have enough savings or may need the cash for personal use
      - once money is gone, it can't be brought back
  - - - quick and convenient
      - easy access to the money
      - no interest payments to make
    - - money won't be available for business once it's gone
  - - - can create space for more profitable uses
      - can be quick
      - raise money from unused equipment
    - - might not get the full market value of the assets or even be able to sell them at all
      - might need the assets in the future