SO3

Question 1

Cost

Answer 1

Businesses evaluate the total cost of financing including interest rates, fees and additional charges
Lower cost are preferred as they minimize financial burden

Question 2

Amount of Capital needed

Answer 2

The required amount of capital depends on the scope of the project
accurate estimates are essential to avoid overfunding/underfunding

Question 3

Time frame

Answer 3

To determine whether or not the business needs short term or long term financing whole considering repayments

Question 4

Risk

Answer 4

Businesses consider various risks such as the ability to repay.

Question 5

Control/Ownership

Answer 5

Businesses must consider how much control they are willing to give up in exchange for financial investments.