Loans

• Loans are where fixed amount of money is borrowed and paid back over a fixed period of time with interest the amount paid depends on the interest rate as wel as the length of time the loan has beeen taken out for
• Different sources of loans such as banks family and friend or peer to peer lending
• Loans are good for start up business for paying assets however they are not good to pay day to day costs
• pro- no shares are given up as the business has to only pay back the loan and interest
• Con- difficult to arrange interest is charge and banks may Ask for security in a loan this may be a house or other assets which can be seized if the loan Isnt paid back