Banks

• Common source of finance and offer other methods such as loans, overdrafts and mortgage
• Advantages- They are recognised as financial institutions and the Term and conditions of the financial product is clear
• Advantage- they can advise business and provide other services such as completing financial documents
• Disadvantag- strict lending criteria and can be hard for start ups or other risky business to be approved for finance
• Con- owners may have to use personal assets as security for the loan
• Con- loans can be expensive compared to others
• Pro- banks won’t really interfere with the way that a business runs and they won’t ask for a percentage as well