Finance available
A business needs adequate funds in place in order for it to meet its objectives, eg to survive and to grow.
Customers’ needs and expectations are always changing so a business has to be ready to meet these new challenges. This is why businesses introduce new versions of a successful product, and why restaurants change their décor or shops change their layout. All of these changes need investment.
To increase their market share and increase sales, businesses need to grow. Finance is needed to help meet the needs of the business as it grows.
Without the proper finance, a business will be held back and will eventually struggle to survive.
Finance may be needed for several different reasons:
- developing new products
- upgrading new software
- a wage rise for existing employees
- hiring new staff
- an advertising campaign for a product
- extending existing premises
- buying a new fleet of vehicles
- opening a new branch
- buying new machinery and equipment
Examples of finance required from the bank for small to medium sized organisations could include: a Money borrowed from a bank that is paid back with interest., an An agreement with the bank that you can withdraw more money from your account than you have in it for a short period of time. Interest rates can be high., a A loan on property., or a A sum of money given to a business by a government body which is not paid back. from the government.
