Sources of Finance

In order to raise capital for the venture, I would first need to determine what funds are available, which ones who be best for the venture, and how I would go about obtaining those funds for the venture. Carter explains that there are two key issues or factors that come into play when determining which kind of capital is the best for a new venture: (a) Usually the search for financing is precipitated by a rejection of an existing bank relationship, and (b) understanding why the company needs capital will determine what type of financing is most appropriate. (Carter, April 2011, pg. 47)

expanding the clubs’ profile beyond their respective sporting arenas. Both took a lot from the

Experts also believe that a way of compensation for the athletes are the facilities that they

Long-term financing means a financing provided to an organization for a period longer than a year. This is done typically for companies who do not have enough capital or for potential home owners. Mortgages are considered long-term loans.

Companies all over the world are in bidding wars to get their name at the top. Whether it's on the hood of a car in a NASCAR race or on the jersey of a soccer team, these companies know the importance of sponsorship. Sponsors come from every corner of the business world and some even make it big if their sponsored athlete makes it big.

options to obtain the needed capital and how you would approach securing this type of financing.

$2.5 million will be spent on a big facility. After this, $3 million will be spent on 2 smaller facilities. For our annual budget, maintenance and operation of our facilities, including utilities will be approximately $65,000 per facility or around $200,000 total. $400,000 will be spent to cover the cost of coaches, dance instructors, and educators however, we will find players who are willing to donate their time to serve these children. It is important for these children to have some kind of motivation and get them thinking about college plans. By giving out 10 yearly scholarships of $10,000 we will help push these children through the right path. The total scholarship expense will be $100,000. In general, the average cost of equipment for one player is $500. The $500 includes pads, jersey, pants, helmet, and cleats. In addition, we will have practice dummies, tackling rings, and footballs. Expecting to grow and create six teams for a chance of competitive scrimmages, we will be spending approximately $150,000 total for equipment. Marketing is an important part of our program. We will be promoting both in the UK as well as the United States. We will raise awareness of our facilities through branding and even broadcasting. Making tshirts and other merchandise as well as creating local commercials and advertisements will cost approximately $250,000. We will also invest $10,000 on our cheerleading program. This will include uniforms for the girls and year long classes. We are expecting around twenty girls but our budget will grow as our number of participants increases. This program will be implemented to avoid any kind of discrimination. We hope this program will also help keep girls on the right path. For events such as scrimmages and tournaments, $10,000 will be spent to pay referees for a total of 6 games and a city tournament. Overall, our total annual expenditure will be approximately $1,185,000, without

At this stage no further funding is needed however, personal loans, credit card etc. are alternatives to optimize funding.

Term loan is a loan from a bank for a specific amount that has a specified repayment schedule and a floating interest rate. Term loan almost always mature between one and ten years. Syndicated loan is a single loan jointly financed by a consortium of financial institutions to provide financing for large projects. Banker’s guarantee is an undertaking by the bank to guarantee payment of a debt or performance obligation by the applicant.

Ultimately, the company must devise a plan for funding its growth long term. While refinanced bank loans may be adequate to finance the company, it should consider raising funds from selling equity. Proceeds from such a deal might be invested in a business that generates revenue during Be Our Guest's slow seasons and eases the firm's reliance on credit for working capital.

There are several methods that can be used to raise finance. The method a business chooses depends on factors of the business; amount of capital required, the purpose, the financial position of

Long Rang financial problems – is any debt, loan, liability, anything that needs to be paid off in over a year’s time. Typically, a company will take on long-term debt to acquire immediate capital, for

Long term debt is financial/economic obligation of company lasting over years. This includes any financing or leasing liability that has a fixed interest rate and is to mature in more than one year. Unlike short term loans, long term loans are paid in full at maturity. Long term debt includes debentures, leasing, and Note payable (long term), bonds, deferred tax liability, mortgage loans and pension liabilities etc.

2.There are many finance options available to new business owner’s. However, the best financing options available to me are:

A debenture is the most common form of long term loan that can be taken by Humbro. Debentures are usually loans that are repayable on a fixed date this is in the statement of financial position under the heading Non-current liabilities (8,000) in both 2011 and 2012. Most debentures pay a fixed rate of interest which you can also see in the statement of financial position under current liabilities titled debenture interest (800) for year 2011 and 2012. The main advantage of a debenture to companies is the fact that they have a lower interest rate than overdrafts. They are usually repayable at a date far off in the future.