Selecting a Source of Finance (Leaving Cert Business): Flashcards

Interest rates and fees

Can impact profitability

Expansion, equipment purchase, working capital

Lower monthly payments but higher total costs

Assets required as security for a loan

Assets at risk if repayments not made

Creditworthiness of borrower

Higher approval likelihood and better borrowing terms

Borrower's ability to repay the loan

Household budgets or cashflow forecasts