Factors to choose a Source of Finance

• Interest Rate - finding a lender with the best interest rate (the lower the better). Shop around for the best loan deals.
• Payment Plan - The length of the loan and total interest to be paid back. If it's Hire Purchase the final payment may be a large amount of money.
• The cost of borrowing - is a down payment required? How much in total has to be paid back?
• Credit Rating - Thr better a business is at paying back debt the better deal's they will get when borrowing money. A business that can't pay back their debts will have a poor credit rating and a poor reputation with their suppliers.
• Is there anywhere else you can get the money? E.g. choosing a cheaper supplier, selling unnecessary assets, leasing or outsourcing.