Sources of Finance for Sole Traders

Starting a business as a sole trader is one of the easiest way to organise small business in terms of management &start up costs. Management duties commonly fall to the owner ofsole trader business, who is also responsible for his decisions as a operator.in terms of paperwork required to establish as a sole trader is minimal compared to more complex business structures. It’s also ideal because the required start up fees are low. More of that,

Long term sources of finance

Range of long term sources of finance is available for businesses including leasing, debt finance , equity finance and venture capital.Long term finance is used for major investments & is typically very expensive & less elastic than short term finance.

Sources of long term include:

Short Term Sources of Finance

The range of short term sources of finance is available for businesses including overdrafts, short term loans,lease finance & trade credit. Short term finance is frequently needed for businesses to run day to day operations activity including payment of wages of employees, inventory ordering & supplies. Businesses with seasonal peaks those engaged in international trade are most likely to be face heavy users of short term finance.
Sources of short term finance include: