Why is the finance needed

• Why is the financial position of the business important ?

  If a business is in a poor financial position - Lenders are more reluctant to offer finance

  Lenders are more willing to offer finance to secure businesses
• Why is how long and quickly the finance is needed important ?

  Quick - short term finance like short term loans or leasing

  Long term - Methods such as mortgages or grants
• Who will lend to the business?

  Start up businesses or struggling businesses - will find their choice limited and would pay much more to access finance

  Businesses that present more of a risk - Choose to raise finance through venture capitalists or crowdfunding

  Unlimited liability businesses - often struggle to raise finance as they’re seen as risky
• How much will it cost and how easy it is to access finance?

  When interest rates are high - loans , mortgages are less affordable

  interest - free methods are usually more complex to access like grants
• What is the legal status of the business

  Lenders (e.g. banks) prefer to lend to more established businesses that own assets Investors prefer to invest in limited companies as they are often able to obtain a share in the business