Nobody downloaded yet

Financing Options - Essay Example

Comments (0) Cite this document
Therefore, the financial system of the economy is very strong and facilitates the institutional and retail investors of the economy with a large number of options for large purchases such as house purchase, lease, bank loan and…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.8% of users find it useful
Financing Options
Read TextPreview

Extract of sample "Financing Options"

Download file to see previous pages 41, No. 3, 2001, pp. 121-140). In this paper, various financial options available in the UK economy for large purchase will be evaluated and the issues associated with such options will also be analysed.
Bank loans are considered to be the most reliable source of financing any large purchase. Bank loan is an agreement in which the borrower is provided with full or partial amount of the money required for purchasing certain assets from a large number of commercial banks such as HSBC, Barclays, Standard Chartered and Royal Bank of Scotland as well as cooperative banks such as Tesco Bank, Sainsburys Bank etc. available in the economy. Such sum of money is provided with an agreement of repaying the principle amount after completion of a stipulated period of time. Moreover, the borrower is subjected to pay the fixed or variable amount of interest rate, as applicable, on the principle amount taken as loan (M. Caglayan and A. Rashid, “The Response Of Firms Leverage To Risk: Evidence From Uk Public Versus Nonpublic Manufacturing Firms”, Economic Inquiry, Volume 5, No. 52, 2013, pp 341–363).
Bank loans can be of secured and unsecured. Unsecured loans are those source of capital in which fund can be quickly availed without any obligation of collateral. Such loan is provided, depending upon the current financial position of the borrower and his reputation in the market. However, in case of large purchases, loan is always made secured by involvement of certain assets such as housing property of the borrower which is used as collateral. The lenders hold the collaterals till the tenure of the loan. If the borrower fails to repay the loan or the interest payment within the stipulated time, the banks are entitled to acquire the right of ownership of the collateral. Secured loan is considered to be the best option for accumulating large amount of money. Mortgage loans are the most prominent example of secured bank loans (I. K. Nassr and G. Wehinger, ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Financing Options Essay Example | Topics and Well Written Essays - 2250 words”, n.d.)
Financing Options Essay Example | Topics and Well Written Essays - 2250 words. Retrieved from
(Financing Options Essay Example | Topics and Well Written Essays - 2250 Words)
Financing Options Essay Example | Topics and Well Written Essays - 2250 Words.
“Financing Options Essay Example | Topics and Well Written Essays - 2250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


The Negative Impacts on the Business: Financing Options

...?External Financing Introduction A company like Acme that needs to expand its operations has several external financing options. This can be either through debt or equity. There are various options including leasing, shares, bonds, debentures, grants, hire purchase, debt factoring and venture capital, among others. Capital structure refers to the way through which companies are able to finance their assets through hybrid securities, debt or equity. Financing of foreign company branches is influenced by local tax rates and the conditions of the capital market. Therefore financing an overseas project depends on effective tax rates. Several factors such as weighted average cost of capital (WACC) and agency costs should be considered... in...
6 Pages(1500 words)Research Paper

Financing Options for Larger Purchases

...? Financing options for larger purchases Financing options for large purchases Thefinancing option is a source from where one can seek some financial help for his/her upcoming future or possible need for some finance. The need can be of any kind, it can be a car purchase or a car lease & it may also be a big purchase like house or some other fixed asset. The option can be any financial instrument used to buy or sell something according to a set of rules & obligation defined earlier. It is like a contract between two parties written for engaging in a transaction. The selling party must fulfill all the obligations written...
4 Pages(1000 words)Essay

Financing Options: Newbe Expanding Business

...? Financing Options Lecturer Prime Financial Consultants, Ainsdale Cresent, Middlesex. May Newbe Enterprises, Fifth Street, Rochester, New York. Dear Sir, RE: Financing Options I am hereby writing in response to your concern regarding the best financing option you should pursue to facilitate taking your business to the mass market. In this letter, I have explained the financing requirements, which I consider crucial for you to understand before making you final decision. I have also presented the various financing options you may consider pursuing together with their advantages and...
8 Pages(2000 words)Research Paper

A written assignment, critically discussing the options for financing healthcare, for a chosen service user group, or for a c

...?Options for Financing Healthcare Health care organizations depend of funding to enable it deliver quality health care services to patients (Lu and Jonsson 2008, p.2). Many health care institutions in the U.K. are reported in need of financing in order to be able to deliver equality services to patients. This follows the recent financial crisis that hit the country making it had for many health care organizations to get enough funds to sustain operations. The NHS hospital in England, for instance, is reportedly having a financial shortfall of close to ?10 billion cumulatively from 2011 (NHS 2012). This implies that the organization has to seek for funding in order to be able to operate...
8 Pages(2000 words)Essay

The Reluctant Workers

4 Pages(1000 words)Essay

Pregnancy options

...Pregnancy Options A pregnancy is one of the most miraculous and natural events that can happen in anyone's lifetime, but is too often threatened by a lack of information that can lead to a poor decision regarding the options that are available for a pregnancy. When a woman becomes pregnant she may decide to carry the baby to term, get a surgical or medical abortion, or place the baby up for adoption. When a woman discovers that she is pregnant, it is critical that she makes a sound decision as soon as possible. Some options, such as a medical abortion, may be time sensitive or require extensive planning. Making the decision to have an abortion with inadequate or incomplete information can...
5 Pages(1250 words)Essay

Global Financing the goods/services exported. Generally, there is a specific time period (normally three years) within which the counter-purchase must be made. Thus, in this form of counter-trading (unlike pure barter), exports only partly finance the purchase of imports. In fact, they simply help balance costs on imports at a later date. In this manner, a counter-purchase transaction is not undertaken because of a lack of convertible currency or incapability to obtain credit. Nevertheless, it has often been used by planned economies as a tool for scheming foreign trade and ensuring that exports balance imports. Offset Offset is similar to counter purchase since the exporter is required to purchase goods and services with an agreed...
4 Pages(1000 words)Essay


...Running Head: Getting Financing Getting Financing [Institute’s Getting Financing Introduction With any doubts, entrepreneurialminds and entrepreneurs themselves are a blessing for any society, community, nation, or economy. These people are the drivers of creativity, competitiveness, creators of an increased GDP and employment (Bygrave & Zacharakis, 2010). However, becoming an entrepreneur is a challenging and tough process in itself. One of the most important questions that most of the people ask when they are starting any business venture or company is regarding financing. Debt financing and equity financing are the two obvious...
5 Pages(1250 words)Essay

Distressed Financing

...intention for achieving this control level is to enhance the value in the company in the long term. The distressed securities often become much attractive investment options for certain class of investors because of the reduced value of the securities. Many institutional investors, especially hedge funds and vulture funds specifically look at distressed securities as a type of bargain because of the low prices of these securities. Also, since these investors are willing to take more risk in order to earn more return, they often invest in distressed securities which have higher potential to become high priced in the long term. The risk level associated with distressed debt financing is high because when...
12 Pages(3000 words)Research Paper

Real Options the strategic value attached to an investment. Point to note, a real option is a possibility venture not an obligatory course. Real options are not traded as financial securities, but their holders, primarily the managers of an investment, can influence the course of the real option. Extensively, real option analysis is applied in decision making under uncertainty and in corporate finance management. Naturally, real options, under a flexible management, relate to project timing, size and how a project will operate upon establishment. How do real options pertaining to the life and timing of a project...
7 Pages(1750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Financing Options for FREE!

Contact Us