Fund or Cash Sources Personal Money of The Entrepreneur: Non-Profit

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Fund or cash sources

personal money of the entrepreneur

For owners of small businesses, personal and business funds are often interconnected.
Most entrepreneurs use their own money to fund their enterprises, and when they make profits
off their goods or services, a portion of the proceeds goes toward paying their living expenses.
loans from relatives and friends

Because too many entrepreneurs borrow money fromfamily and friends on an informal basis.
The terms of the loan have been verbalized but not written down in a contract. ... (called a
"promissory note") for thefriend or family member, and don't offer less than a "commercial"
interest rate.
loans from banks and other lending institution

The most common lenders are banks, credit unions, and other financial institutions. More
recently, the term "lender" has been expended to refer to less traditional sources of funds for
small business loans, including: Peer-to-peer lenders: borrowing from individuals, through
online organizations like LendersClub.
Investor

An investor is any person or other entity (such as a firm or mutual fund) who
commits capital with the expectation of receiving financial returns. Investors
utilize investments in order to grow their money and/or provide an income during
retirement, such as with an annuity.
government assistance program

Benefits are provided to individuals or their caretakers. They may be able to apply for free food,
health care, cash assistance from SSDI, transportation, free grants for home repairs or
modifications, and more. Both state and federalgovernment funds can aid the disabled. Find
disability financial assistance programs.
Non-government assistant program(NGO)
are usually non-profitand sometimes international organizations[5] independent of governments and
international governmental organizations (though often funded by governments)[6] that are active in
humanitarian, educational, health care, public policy, social, human rights, environmental, and other
areas to effect changes according to their objectives
rules of financing

know the cash requirements


know the best term
know how and went to pay
owner’s investment should be more than the borrowing
if borrowing are needed for fixed asset or working capital.
a. finance fixed asset from long term borrowing

b. finance working capital from short term borrowings

capital requirements

fixed capital
fixed capital is any kind of real, physical asset that is used in the production of a product but is not
used up in the production. It contrasts with circulating capital such as raw materials, operating
expenses and the like.
Working capital

the capital of a business which is used in its day-to-day trading operations, calculated as the
current assets minus the current liabilities.
An organizational cost or expense is the initial cost incurred to create a
company. Organizational costs usually include legal and promotional fees to establish the
company with the state and federal government. In other words,organizational expenses are
the costs of organizing or incorporating a company.
Contingencies or unforeseen cost
Contingency Amount: Contingency amount refers to the money set aside to cover
any unforeseen expenses of the organization or the project. Contingency expenses are
required because any organization or a project can face an uncertainty because of which
certain costs are incurred.

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