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raising finance - Coggle Diagram
raising finance
external finance
family and friends
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friends and family will still very often want interest on loans since they don't want to financially lose out
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banks
when banks provide money ,but this will be payed back with interest
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if the owner goes out and gets a personal loan to invest in the business then that means they will be completely liable
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business angels
come from rich individuals who provide capital to high risk, small business or startups
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other business
some larger firms actively seek small business either starting up or in the early stages to provide finance normally in the return of shareholdings
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planning
the business plan
needed for startups especially if they seek external finance since sources will want to see a logical viable plan
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methods of finance
loans
loans can be from banks, friends, family or even business directors
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liability
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unlimited liability
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can include customers who ahve payed and not got the prodcut or suppliers who have given up resources and not been payed
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