Grants

• What is the definition of grants?

  A financial award given by organizations
• Who can provide grants?

  The government, local councils, or charities
• Give an example of a charity that provides grants.

  The Prince's Trust
• What type of finance are grants considered?

  External long-term finance
• Why are grants considered long-term finance?

  They help establish start-ups or new businesses
• What is a major advantage of grants?

  They are effectively free money
• Why is a grant considered non-repayable?

  It does not require repayment or interest
• What is a benefit of grants regarding business control?

  You do not give up any control of the business
• What is a disadvantage of obtaining a grant?

  The process can be time-consuming
• What is an opportunity cost in the context of grants?

  Time spent applying without guarantee of success
• What is a common condition associated with grants?

  They may require match funding
• If a grant is £5,000, what might a match funding condition require?

  You must provide an additional £5,000
• How does match funding affect the grant process?

  It requires additional cash from the applicant
• What are the pros and cons of grants?

  Pros:

  • Free money (non-repayable)
  • No loss of business control

  
  

  Cons:

  • Time-consuming application process
  • Opportunity cost if rejected
  • Possible match funding conditions