Finance论文模板 – Finance Investment of iPad Case

FIRST WAY TO RAISE FINANCE

In order to start a business, there must be proper methods for raising finances/funds. This start-up funds are used to purchase equipment (in my case i-pads and other i-pad accessories), pay rental fees for the office if the entrepreneur has decided to rent a place and other expenses that may arise.

The first way that I will go about to procure finances for my young company is getting a loan from a bank. A loan is defined as the act of lending money, property or other physical goods to another party in exchange for future repayment of the principal sum along with the pursuit of other finance charges (Loans 2015). Loans that are directed towards companies, whether start-ups or established ones, are called business loans.

Why a Loan?

The main reason I would go for a business loan is because banks offer big loans to start-up business (Francis n.d.). Banks are usually enthusiastic towards young entrepreneurs who give a good presentation of their business plan and most importantly offer reliable collateral. 

Furthermore, a loan is the first way I would use to raise finance for my i-pad company because banks are usually convenient and accessible (Advantages and disadvantages 2010). With banks that a customer is familiar with, it is easy to get a loan since they will be able to monitor the progression of your company. Banks are also convenient since they are places where depositing and withdrawing of money occurs.

Since my company is small, the interest percentage will be subsidized (Advantages and disadvantages 2010). This will serve my i-pad company a great deal since the amount of money that I will pay to the bank plus interest will not be like the amount an established company will pay for the same amount of money loaned.

Another reason I would go for a loan as the first way to raise funds is business independence (Francis n.d.). Business independence means that the bank will not dictate what I do with my business just because I have taken a loan from their bank. Theirs will be to collect the agreed upon instalment until the period ends.

Last but not least, I would take a loan in order to dictate the amount of money that I want to take and the period that I will take to pay it. This may enable me to slowly grow my company as I pay the instalments at a convenient time for my i-pad business.

Loans and the Current Investment Environment

With the current investment environment, where the government is about to change, loans will still be a better option for attaining finances for starting-up the i-pad company. The rates of loans changes with the trend of the economy. When the economy is at a dip, the Government, whether the current one or the incoming, will increase the rates

Reference List

Loans Definition, 2015. Loans Definition. Investopedia. [online] Available at <http://www.investopedia.com/terms/l/loan.asp> [Accessed 02 May 2012]

Francis, C., n.d. What are Business Loans. Money Super market. [online] Available at < http://www.moneysupermarket.com/business-finance/business-loans-explained/> [Accessed 02 May 2015]

Advantages and Disadvantages of Taking Small Business Loans from Banks, 2010. BusinessBlogs. [online]. Available at: <http://www.businessblogshub.com/2010/10/advantages-and-disadvantages-of-taking-small-business-loans-from-banks/> [Accessed 02 May 2015]

Advantages and Disadvantages of Taking Small Business Loans from Banks, 2010. BusinessBlogs. [online]. Available at: <http://www.businessblogshub.com/2010/10/advantages-and-disadvantages-of-taking-small-business-loans-from-banks/> [Accessed 02 May 2015]

Francis, C., n.d. What are Business Loans. Money Super market. [online] Available at < http://www.moneysupermarket.com/business-finance/business-loans-explained/> [Accessed 02 May 2015]

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