The directors have independently assessed that they need funding of 250,000 to invest in projects and to

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Question:

The directors have independently assessed that they need funding of £250,000 to invest in projects and to secure the future competitiveness of the business. The directors are unsure as to whether to approach a bank for a loan, other potential investors, or other internal or external sources of finance in order to secure the money required.

Advise the directors on both internal and external forms of financing. Your discussion should cover the advantages and disadvantages of these forms of finance, it should be based on your review of the case study and should be developed through further reading on the subject area. You should conclude by providing a justified recommendation for the directors.