| Commentary

14.4 Greater scope in raising finance

| Commentary

14.4 Greater scope in raising finance

Separate legal personality also brings with it benefits in the raising of the necessary finance for the business, whether this be initial seed capital for the start-up or subsequent capital for expansion. There are advantages whether this finance is to be provided in the form of equity capital or by the more traditional method of borrowing.

If a limited company or a limited liability partnership (LLP) wishes to borrow money, it has one immediate advantage over a sole trader or partnership in that it is able to offer security in the form of a floating

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