The task is to analyze available sources of finance

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Reference no: EM131306338 , Length: 1000 Words

Introduction to Corporate Finance Case Work: Sources of Finance

The task is to analyze available sources of finance for a selected SME entity. (1 SME company)

  • What sources of finance are available for the selected entity?
  • What is the cost of capital in your selected company based on your previous learning?
  • How does the entity finance its operations?
  • How much is finance by equity and debt or are there other instruments available for your entity?
  • Identify cost of capital and compare alternative funding options available for your selected entity.

Grading criteria: Comprehensiveness, Analysis, Critical Thinking ability

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Sources of Finance Available There are various sources of finance that are available to the SMEs. In this, private loans, banks, business angels, seed funds and venture capitalists are some of the main sources of finance that are available to the SMEs for operating their business operations. In this, private loans are related to the funding from friends and family. The amount of money in this source of type is limited and unstructured and the rate of interest is higher as compared to the other types of sources of finance (Levy, Berry and Nugent, 2012). On the other hand, bank loan is also a type of finance source that SMEs are used. In this source of finance, the amount available to the firm is limited by the security against the loan. In this, the banks take the property, fixed assets and insurance policy in order to fund the business operations (Roberts, 2015).

Reference no: EM131306338

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