LOAN

• LOAN:

  • BANK gives a business Money to be REPAID over a period of time in affordable MONTHLY payments
• ADVANTAGES:

  • LARGE sum can be borrowed in a SHORT amount of TIME
  • Bank- could offer business ADVICE
  • Repayments- AFFORDABLE chunks
• DISADVANTAGES:

  • May require a form of SECURITY (e.g. house, CAR)
  • This means that the bank can still PROFIT if the business declares BANKRUPTCY / is in debt
  • INTEREST also must be paid
• LOAN:

  • Suitable for both NEW and ESTABLISHED businesses