Hire purchasing helps customers to buy articles at instalments through EMI,instead of paying lumpsum at a time.However, there are chances of pushing inferior articles through hire purchase by sellers. Even the customers may default and/or delay payment of instalments leading to litigation.
The advantages are that you will not have to pay it back or worry about interest. Disadvantages are that you have to come up with the money no your own.
Difficult in pricing
There are various advantages and disadvantages of advance loans. On the one hand, advance loans allow a person or business to have enough cash on hand to purchase something or to finance a project. On the other hand, they accrue interest the longer one waits before paying them back.
What is objective of business finance? Why finance is important for a business? purchase of asset income daily expenses taxation
If the business is making profits, a percentage of it's profit has to be distributed to shareholders and other firms where it has gotten finance from.
The advantages are that you will not have to pay it back or worry about interest. Disadvantages are that you have to come up with the money no your own.
Difficult in pricing
There are various advantages and disadvantages of advance loans. On the one hand, advance loans allow a person or business to have enough cash on hand to purchase something or to finance a project. On the other hand, they accrue interest the longer one waits before paying them back.
What is objective of business finance? Why finance is important for a business? purchase of asset income daily expenses taxation
Hire purchase can give the good profit,
If the business is making profits, a percentage of it's profit has to be distributed to shareholders and other firms where it has gotten finance from.
It's possible to raise more money than a loan can usually provide.
You can purchase Virtual Business - Personal Finance Software for a single computer. The mini version of the software allows up to five concurrent computer users.
An advantage could be that it helps kick start Small Businesses that don't earn much revenue and need more staff or branches before they can start earning enough revenue however, a disadvantage would be that it's quite a bit of a pay back. The disadvantages of the short term sources of finance is that they cannot be used to finance very big and major projects.
Advantages and disadvantages of a bank loan are based on comparative sources of finance. What are we comparing the above bank loan to? No loan at all? Equity investment? Factoring of receivables? Is the loan secured or unsecured? The question cannot be answered in a relevant manner without context.
Yes, there are financial forecasting software available for purchase and download. You can find them at www.freedownloadscenter.com/Business/Finance/FinPro.html
Advantages and disadvantages of equity financeEquity finance can sometimes be more appropriate than other sources of finance, eg bank loans, but it can place different demands on you and your business.The main advantages of equity finance are:The funding is committed to your business and your intended projects. Investors only realise their investment if the business is doing well, eg through stock market flotation or a sale to new investors.You will not have to keep up with costs of servicing bank loans or debt finance, allowing you to use the capital for business activities.Outside investors expect the business to deliver value, helping you explore and execute growth ideas.The right business angels and venture capitalists can bring valuable skills, contacts and experience to your business. They can also assist with strategy and key decision making.In common with you, investors have a vested interest in the business' success, ie its growth, profitability and increase in value.Investors are often prepared to provide follow-up funding as the business grows.The principal disadvantages of equity finance are:Raising equity finance is demanding, costly and time consuming, and may take management focus away from the core business activities.Potential investors will seek comprehensive background information on you and your business. They will look carefully at past results and forecasts and will probe the management team. Many businesses find this process useful, regardless of whether or not any fundraising is successful.Depending on the investor, you will lose a certain amount of your power to make management decisions.You will have to invest management time to provide regular information for the investor to monitor.At first you will have a smaller share in the business - both as a percentage and in absolute monetary terms. However, your reduced share may become worth a lot more in absolute monetary terms if the investment leads to your business becoming more successful.There can be legal and regulatory issues to comply with when raising finance, eg when promoting investments.