By: * * Introduction Top of FormBottom of Form | In this report we are going to help Mr T Jones to start his fast food restaurant in Manchester. Mr T. Wants to start a franchise restaurant Wimpy and needs help with the financial resources and planning part.
Step one, there are different souses of finance and it’s divided into internal and external finance, money that comes from within a company and the opposite any way in which company raises financing other than using its own money. (See page 4). We are now going to go thru different options of finance for Mr T franchise. | |
1.1 Range of sources of finance for different …show more content…
• You can get a loan from many banks. If you can provide a strong business plan.
• Find business partner
SBA-Backed Financing, these is one of the popular business loans and it can be obtained by those who do not qualify for traditional financing options.
There are several innovative companies that will roll your retirement plan into a business loan. There are no penalties associated with this type of retirement fund conversion. This type of loan enables you to invest in a business without mortgaging your home or using your property as collateral. Mr. T franchise holder that operates as PLC can open the company to the public and issue more shares. 1.2 The implications of diferent sources of finance Banks/Credit unions Every financial source has set of implications for example when you borrow money from the bank you will need to pay certain amount of interest as well as other agreements between lender and borrower, such as being penalized for late payment. The interest is usually fixed by the debt holders.When borrowing from credit unions the rules will be much the same as with regular banks, however the rate of interest may be lower. When company makes loss they still have to pay the interest. If Mr. T. fails to pay interest, the debt holders will become creditors. In this case, franchisee have