no borrowing involved
selling shares so no borrowing
can gain access to support with running the business
if no profit then no source of finance
Increases fixed costs
suitable for paying bills in the short term
if the owner has no savings then no finance is available
must be repaid within 12 months
Must be repaid with interest
limited on who shares can be sold to
items must be paid for normally within 30 days
allows buy now pay later from suppliers
owner must give away part of the business
using profit so no borrowing