Banks

• advantages of using a bank as a source of finance

  May offer short term finance - overdrafts . And long term finance - loans if the business qualifies

  Banks are keen to provide free guidance to businesses that use their services

  able to loan big sum of money - much easier for bigger businesses
• Drawbacks of using banks as a source of finance

  Banks can be cautious lending to untested new businesses

  Businesses must be customers to the bank to access some loans

  for larger amounts , businesses may need to provide security to be granted a loan