| Commentary

139 Introduction

| Commentary

5: MINIMISING CAPITAL REQUIREMENTS

139 Introduction

It is clear that there are a large number of sources of finance for the embryonic business to consider. This does not alter the fact that it still makes sense to reduce the business’s capital requirements as much as possible. Where the proprietors’ own capital contributions are insufficient for the needs of the business, the traditional recourse has always been to look to loan capital to make up the shortfall. All borrowed money however is relatively expensive to raise and repay, even in a time of low interest rates, and in extremis may leave the

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