Sources of Finance

Table of Content Page
I. Assignment coversheet………………………………………….………………….1-3

II. Executive summary……………………………………………………….………5

III. Introduction…………………………………………………………….….……...5

IV. Main body…………………………………………………………….…….……..6

4.1. Sources of finance and its advantages & disadvantages…………………….…6-8

4.2. The implications of the different sources of finance……………………………8-9

3. Appropriate sources of finance for a business project………………….……….9-13

4.4. The costs of sources of finance for Vale Filters Limited………………….…….13-16

4.5. Importance of financial planning……………………………………………….17-18

V. Conclusion…………………………………………………………………………18

VI. Reference List……………………………………………………………………19

II. Executive summary

I am newly appointed Financial Advisor in a Consultant Company, my Finance Director asked to write a report to Mr. Alan at Vale Filters Ltd evaluating the different sources of finance appropriate to startup stage and its expansion stage also. The report should address the following tasks and issues:

Firstly, I identify and describe the various sources of finance available to Vale Filters Ltd. Secondly, I assess the implications of the different sources of finance to Vale Filters related to risk, legal, financial and dilution of control and bankruptcy. Thirdly, I select appropriate sources of finance for Vale Filters and make recommendations on the best ways of raising finance. Fourthly, I assess and compare various costs involved with each sources of finance to Vale Filters Limited. Finally, I explain the importance of financial planning for Vale Filters Ltd.

III. Introduction

Vale Filters Ltd is new company that has just been established by Mr. Alan Simpson and Mr. Geoff. Although company has not gone to productive activities but company has plan to produce and market the new filter. In the future, the company will