Sources of Finance

Borrowing money from a bank where repayments are spread over a period of time. Interest is paid on top

• Bank Loan

• Mortgage

• Government Grant

• Hire Purchase

A percentage of money that needs to be paid back on the money you are borrowing

• VAT

• Net Pay

• Tax

• Interest

Used to obtain equipment and machinery

• Bank Loan

• Government Grant

• Hire Purchase

• Mortgage

Payments are made over an agreed period of time, but the equipment does not belong to the business until the final payment has been made

• Bank Loan

• Hire Purchase

• Mortgage

• Government Grant

Does not need to be repaid

• Government Grant

• Mortgage

• Hire Purchase

• Bank Loan

Finance can be obtained from the Government if the business meets the criteria

• Government Grant

• Bank Loan

• Mortgage

• Hire Purchase

The criteria for this may be to provide jobs for people in high unemployment areas

• Government Grant

• Hire Purchase

• Bank Loan

• Mortgage

Used to buy property over a long period of time

• Bank Loan

• Mortgage

• Government Grant

• Hire Purchase

Can be obtained from a bank or a building society

• Bank Loan

• Mortgage

• Government Grant

• Hire Purchase

Usually takes 25+ years to pay back

• Mortgage

• Bank Loan

• Government Grant

• Hire Purchase