Starting And Developing A New Venture

Want to read the rest of this paper? Join Essayworld today to view this entire essay and over 50,000 other term papers

associated costs for the project been included? Has the borrower put money in themselves? Is there a contingency?

• Repayment

Will the business generate sufficient cash to make the interest payments and repay the capital?

• Insurance

Is security necessary? Is personal as well as business collateral required?

Character

Based on the Information provided in the business proposal the following conclusions can be drawn with respect to Ms Thomas’s character. She does have a long term relationship with her bank which spans 10 years and she has managed to amass savings of £2,800, however she is regularly overdrawn and has not added to her savings in over 18 months.

Ms Thomas has recently been made redundant from her waitressing job in a hotel. An addition note for consideration is she has previously taken some time off work to look after her farther, if she need to do this again it could have an impact on her ability to effectively run “Let’s go ...

Get instant access to over 50,000 essays. Write better papers. Get better grades. Already a member? Login

£45,000 to sell her his half and It would not seem she has accounted for this expenditure, which could have serious implications on her financial ability to run the new business.


Repayment

Ms Thomas would have to make the repayment on her additional £70,000 mortgage as well as the repayments of the 47,500 loan from her parents.

The £70,000 repayments are based over 10 years and she would be looking at a repayment figure in the region of £800. (This figure is based from the Alliance Leicester mortgage calculator).

No information is given about the term of the interest free loan form Ms Thomas’s parents. But if she is repaying it over the same term as the addition mortgage it ...

Succeed in your coursework without stepping into a library. Get access to a growing library of notes, book reports, and research papers in 2 minutes or less.

CITE THIS PAGE: