| Type of business Organisation
| Possible sources of finance
| Key issues for consideration
|
| Sole Trader
| Owner savings, banks, suppliers, government grants and
|
- Security for those lending funds
- Loss of control by owner
- Evidence that business has potential to develop
- Financial history of business/owner
|
| Partnership
| Partners' savings, banks, suppliers, government grants and loans, hire purchase and leasing companies
| *Problems of introducing new partner
- Lack of collateral
- Potential expense of raising large sums of money
- Should they form a limited company?
|
| Private limited company (ltd)
| Dependant upon the size of the private limited company, suppliers, banks, factoring, leasing and hire purchase companies, government grants and loans, venture capital institutions, private share issues
|
- Disagreement amongst existing shareholders
- Difficulty of finding suitable shareholders
- Loss of control by existing shareholders
- Lack of collateral and security for those lending funds
- Element of risk in the loan
|
| Public limited company (plc)
| Suppliers, banks, factoring, leasing and hire purchase companies, government grants and loans, venture capital institutions, public share issues via the stock exchange
|
- State of economy and stock market
- Ability to move to area receiving government aid
- Recent financial performance
- Reputation of company and senior managers
|
| Non-profit making organisation
| Charitable donations, lottery money, government and EU grants
|
- Public profile
- Relationship with government
|
