no borrowing involved
can gain access to support with running the business
must be repaid within 12 months
suitable for paying bills in the short term
allows buy now pay later from suppliers
selling shares so no borrowing
limited on who shares can be sold to
items must be paid for normally within 30 days
Increases fixed costs
if the owner has no savings then no finance is available
using profit so no borrowing
Must be repaid with interest
if no profit then no source of finance
owner must give away part of the business