Accounting for Business: Long Term Finance Options for Different Company Types

Accounting for business

Table of Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
Long term finance option phone sole trader................................................................................3
External long term sources of finance for partnerships...............................................................3
Long term finance for Private Limited companies......................................................................4
Long term finance for a public limited company.........................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

Introduction
The following report focuses on accounting for business. Accounting for business refers to
Systematic analysing recording and interpretation of the information which is related to finance
of the company (Duliniec and et.al2021). Accounting assist the management and business owner
to meet all the applications with the help of proper financial planning and taking smart decisions
with the available fund. This report provides detailed information about sources of finance for
sole trader’s partnership Private Limited companies and public limited companies.
Main body
Long term finance option phone sole trader
Sole trader is a person or proprietor who is responsible for all the liabilities assets of the company
and also all the expenses faced by proprietor and sole trader has the right on the entire profit.
Business loan
This is one of the fastest and convenient way to get fund for the business. Business loan allowed
the salt trader to borrow money from the bank and it is the responsibility of sole trader that they
have to repay the borrowed money to the bank and also they have to pay interest for certain
period.
Savings
As sole trader is the only person to run the entire business so sole trader can put their savings in
the form of capital to the business so that they do not need to pay any kind of interest to anyone
and all the profit will be the part of sole trader only.
Start-up loan
Soul tried again use the start-up loan to find the new business and venture this is also part of the
personal loan but this is backed by the government to promote new start-ups in the country. This
is one of the long term finance which is available to the sole trader and trader can easily grow
their business for long in the market.
External long term sources of finance for partnerships
Partnership is the business which is run by more than two persons and their aim is to earn profit
and enhance the invested capital.
Invoice Finance
Invoice finance is one of the convenient way of getting finance from external sources for long
term Finance. With help of invoice Finance partnership firm can borrow money with the help of