Colchester Institute
Sheepen Road
Colchester
Essex
CO3 3LL
05 January 2015
Dear John
I am writing to you about the internal and external sources of finance that you can use to
setup a college shop.
Internal resources that you could use to set up the shop could be a savings and business
account. Using this type of account means you will be able to see where your money is
going and it will be easier for accountants to sort out this account. Using your own money
will mean that you are in full control of the shop.
External resources that you can use to start your business could be a business loan from
a bank. This will cover all the costs needed for setting it up. Bank loans are then paid off
in monthly sums and if a business is extremely successful, then it can become easy to
pay these instalments back. A business credit card can also be used throughout your
business, and this allows you to buy stock using it.
Leasing could also be used as an external resource. This is where you can pay monthly
for resources need, however the resources will not be fully owned by you, the business
owner.
Hire purchase can be used to purchase resources for the college shop but you will not
own the resources until total amount has been paid.
Venture capitalist is another external source. Outside people invest in projects that have
a possible risk and want to share a part of the business in return for investment.
Please do not hesitate to contact me if you need to know any further information.
Yours sincerely
Sheepen Road
Colchester
Essex
CO3 3LL
05 January 2015
Dear John
I am writing to you about the internal and external sources of finance that you can use to
setup a college shop.
Internal resources that you could use to set up the shop could be a savings and business
account. Using this type of account means you will be able to see where your money is
going and it will be easier for accountants to sort out this account. Using your own money
will mean that you are in full control of the shop.
External resources that you can use to start your business could be a business loan from
a bank. This will cover all the costs needed for setting it up. Bank loans are then paid off
in monthly sums and if a business is extremely successful, then it can become easy to
pay these instalments back. A business credit card can also be used throughout your
business, and this allows you to buy stock using it.
Leasing could also be used as an external resource. This is where you can pay monthly
for resources need, however the resources will not be fully owned by you, the business
owner.
Hire purchase can be used to purchase resources for the college shop but you will not
own the resources until total amount has been paid.
Venture capitalist is another external source. Outside people invest in projects that have
a possible risk and want to share a part of the business in return for investment.
Please do not hesitate to contact me if you need to know any further information.
Yours sincerely
