sources of capital

• A source of capital is where a business owner gets the money from to et up their business.

  owner savings- money that the owner has saved up for over a period of time : no interest is charged, no application process and limited to total saved
• friends and family- money loaned to the owners from people they know personally: interest is unlikely, no application prices and tension if not repaid.
• loans- money the bank lends to a business owner after seeing a business plan : potential for larger amount of capital, interest is charged
• a source of capital is where a business owner gets the money from to set up their business

  crowd funding- money donated online by sponsors: helps promote an idea, usually have a target, takes a long time
• small business grants- financial support given by the government, charities or local councils : often no repayment is required, have to meet criteria
• business angels- wealthy business people who invest in other businesses ideas: no interest is charged, no application process and limited to total saved