If you’re starting or expanding your business you may need to obtain finance.
Carefully consider the type of finance as it could affect your tax obligations and cash flow.
Before sourcing finance:
- determine how much finance you will need
- develop a sound business plan
- consider the timeframe you will need to repay the loan
- determine your ability to repay the loan
Two of the main types of finance include:
- Debt finance – money borrowed from external lenders, such as a bank
- Equity finance – investing your own money, or funds from other stakeholders, in exchange for partial ownership.