What are the different ways a business can raise capitalv

Bank Loans (long or short term) - however they can incurs high interest rates. Overdraft -(short term solution) but again includes paying interest. Business angles - people that invest in your business with the sole purpose of making a return, they do not make any other contributions bar financial and are paid in equity. Selling shares on the stock exchange - this method is on available to PLC's as LTD's can only sell to friends/family - quick way of generating capital but owners decrease the amount of business they own.

EY
Answered by Emma Y. Business Studies tutor

1598 Views

See similar Business Studies GCSE tutors

Related Business Studies GCSE answers

All answers ▸

What is meant by organic growth of a business?


The external environment in which businesses operate can have a significant effect on their success. To what extent do you think that the external environments in markets are favorable for businesses at the moment? Justify your answer with reference to ex


What is the difference between a public limited company and a private limited company?


Provide one reason why a business may decide to create a sales forecast.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning