Answers
Used when buying stock or materials
Founder gives up some control
Account can go below zero
Past earnings kept in the business
Requires work to build interest
Hard for a start-up to negotiate
Easy to arrange
Repaid over set time period
Money guaranteed for arranged period
Uses up contingency fund
Borrowed from a lender
Can help with marketing
Regular repayments required
Supplier lets the business pay later
Investors cannot ask for it back
The business keeps its cash longer
Not reliable every year
Cash is available straight away
Security or asset required
Money from within the business
May help avoid excessive spending
Only available when trading is successful
Owner uses own money
Dividends paid when profit is made
Small amounts from many people
Loss of potential interest
Tests public reaction to a product
Full repayment can be demanded quickly
A rival may copy the idea
Business sells part of its ownership