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Business expert offers finance advice
04/04/2007
Debt finance, such as business loans, is generally appropriate for companies that quickly make a profit and are able to repay what they owe, an expert suggests.
In contrast, businesses which take longer to make profits often opt for equity finance to get up and running, according to Professor Russell Brown, commenting in the Independent.
Whichever option businesses take in order to raise finance, most of them will involve having to repay money, the professor indicates.
Professor Brown believes that all businesses need to consult with financial experts before making any important financial decisions.
"The two [aforementioned] forms of finance are not mutually exclusive and therefore many businesses access finance from both sources," he said to the newspaper.
"I recommend that you discuss any financial needs with your accountant before making a decision."
The business expert also advises companies that they need to keep records of all business transactions, as well as keeping corporate and personal finance separate. One way of doing this is to open a business bank account.
In contrast, businesses which take longer to make profits often opt for equity finance to get up and running, according to Professor Russell Brown, commenting in the Independent.
Whichever option businesses take in order to raise finance, most of them will involve having to repay money, the professor indicates.
Professor Brown believes that all businesses need to consult with financial experts before making any important financial decisions.
"The two [aforementioned] forms of finance are not mutually exclusive and therefore many businesses access finance from both sources," he said to the newspaper.
"I recommend that you discuss any financial needs with your accountant before making a decision."
The business expert also advises companies that they need to keep records of all business transactions, as well as keeping corporate and personal finance separate. One way of doing this is to open a business bank account.