Owners capital

Cards (4)

  • Owners capital is the money the owner invests in the business often from their personal savings
  • Sole traders and partnerships are usually to use this source of finance as small business don’t need a large sum of money
  • Advantages is that it is easy to access and doesnt need paying back
  • Disadvantages- amount of finance that can be raised is limited as it depends on the personal wealth of the owners