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UNIT 9: RAISING FINANCE: The advantages and disadvantages of borrowing…
UNIT 9: RAISING FINANCE: The advantages and disadvantages of borrowing money from different sources
A loan shark
Easy borrowing
Disadvantages
Confusing payment cycles
Difficult for borrower calculate the total amount
Pay more interest than any legal borrowing
being intimidated or attacked.
A friend or colleague
Disadvantage
Limited Legal Protection
Lost good relationship with friends
Some friends or colleague don't feel comfortable to loan money
advantage
Flexible time
No loan interest
Convenience
Disadvantages
Risk of Public Debt
Risk of Frand and Robberies
Chances of Bank Going Bankrupt
Advantages
Availability of Cheap Loans
Safety of Public Wealth
Development in Rural Areas
Global Reach
Propellant of Economy
Economies of Large Scale
A Pawnbroken
Advantages
It’s quick, as you’ll usually get your money the day you pawn your item.
You’ll be able to get your goods back at any time
There are no credit checks with a pawn loan, so even if you have a terrible credit rating you can still borrow.
They’ll only charge interest for the period you borrowed and no more.
Disadvantages
You can only borrow a percentage of the value of the item you’re pawning.
You lose the item if you don’t collect it or default on your loan, and if they sell your item and it doesn’t cover your debt, you have to repay the remainder.
You can often get cheaper interest rates elsewhere, with a homeowner loan for instance.
Credit-cash company
Advantages
Easy Arrangement
Flexibility
Interest Only on the Amount Utilzed
Interest is Tax Deductible
Fulfils the Working Capital Requirement
Disadvantages
More Compliances and Checks
Retricted Use
Minumum Commitment Charges
Interest is Tax Deductible
**High Rate of Interest
Advantages
Available anywhere
More accessible for people.
Help people without a great credit score
A member of family
Advantage
Lower Interest Payments
Interest Income
More Flexibility
reduce your monthly minimum payment
extend a grace period
Disadvantage
Changing Power Dynamic
Limited Legal Protection
Strained Relationships
