Obtaining Start-Up Finance for a Business :: Papers

Obtaining Start-Up Finance for a Business This essay is an advise for Mr. Miyako on obtaining start-up finance for a business. Mr. Miyako wants to open a new Japanese restaurant. A suitable location has been selected in the suburban metropolis of Sheffield, South Yorkshire of the join Kingdom, directly in opposite of the train station, with many bus bread in the vicinity. This place is near the Peak district, which is a nature reserve. In the weekends and in holidays the Peak district is visited by lots of people from the city of Sheffield and Manchester. At this moment there is no Japanese restaurant in surroundings of Sheffield. Estimated cash requirements In this paragraph the estimated cash requirements for the business is calculated. The calculations atomic number 18 based on a new inventory, Teppanyaki tables, a new kitchen and restitution speak to of the interior. New inventory (tables, chairs, bar etc.) 30.000,00 Teppanyaki tables (6 pieces ) 15.000,00 New kitchen 50.000,00 Renovation cost of the interior 100.000,00 ----------------------- Total 195.000,00 Possible sources of finance 10% of the required fund is available from Mr. Miyakos private family funds. 90% of the sum needs to be attracted from another(prenominal) sources. These sources ar e.g. a lend from a avow, a loan from a supplier (like the brewery) or an overdraft. Each of these sources will be described in detail. Loan from a bank A loan from a bank is an agreed amount of borrowed property that needs to be paid bear out in a fixed period of time with interest. To borrow money from a bank, a detailed business plan is needed. For start-up finance, the maximum loan is often not more than 50% of the required sum. Interest evaluate at the moment are 6-7 percent. Loan from a supplier Breweries are likely to supply loans to start-up entrepreneurs. In the loan contract the brewery can concord Mr. Miyako to only u se the beer and soft drinks supplied by the brewery. Loan can be in cash, but also