Owners capital

• what’s is owners capital

  personal savings
• when is owners capital a key source

  When a business starts up
• What are advantages of using owners capital

  No debt - a business does not take out any loans

  no approval is needed so a business can reinvest quickly - useful in a dynamic market
• what are drawbacks of using owners capital

  Limited funds available - unsuitable if the business were looking to expand as it would require a larger amount

  risk of losing savings - if business fails the owner will lose any capital that went into the business