Analyzing Short and Long Term Sources of Finance for Ferry Acquisition

Business
Individual
Report

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
1. Analyse short and long term sources of finance to fund the acquisition of ferry for
company’s working capital.....................................................................................................3
2. Evaluate various investment appraisal techniques and recommend viability of acquisition
and operation for new ferry....................................................................................................4
CONCLUSION..........................................................................................................................5
REFERENCES...........................................................................................................................6

INTRODUCTION
Business is the activity of manufacturing goods with improved quality and services to
meet the requirements of customers for providing them high level of satisfaction. This creates
opportunity for growth and stability of business by competing with its rivalries to sustain in
global market. This project is based upon Zylla Limited Company for facilitating ferry
services through crossing rivers by human beings, vehicles and equipments (Doda, 2014).
This project analyse short and long term funding sources of finance to fund the acquisition of
ferry for company’s working capital. Additionally, it evaluates various investment appraisal
techniques and recommends viability of acquisition and operation.
MAIN BODY
1. Analyse short and long term sources of finance to fund the acquisition of ferry for
company’s working capital
Short-term sources of finance:- This is defined as the funding source for minimum
period from one to three years. As being the finance manager of Zylla Limited Company
these short term funds mostly take exposure only in quality companies. It is recognized as the
proven capacity for recording or repaying loans on time as well as has sufficient cash flow
from business operations.
 Crowd Funding:- It is also known as crowd sourcing as a method to fund money on projects
by raising small amount from large number of people through internet. As being the finance
manager of Zylla Limited it is considered as the use of small capital to finance new business
venture for sustaining in global market (Myers, 2019).
 Angel Investor:- This investors are described as the persons who invest their money in new
or small business venture by providing capital for start-up or expansion. As being the finance
manager of Zylla Limited, the angel investor funds with spare cash available to them in order
to reduce risk by generating higher rate of return than would be given by more traditional
investments.
Long-term sources of finance:- It is described as the funding source of company in
borrowing money for maximum period of ten years. The Venture capitalists provide equity and other
types of long-term funds to unlisted companies. As being the finance manager of Zylla Limited
Company these funds includes equity share, preference capital, retained earnings, debentures
bank loan, venture funding, asset securitisation, etc.
 Equity Shares:- This represents interest-free perpetual capital of the company raised
by public or private routes. The companies can raise their funds either through
increasing IPO prices or providing substantial amount of stake in company. As being
the finance manager of Zylla Limited as equity holder have no preferential right in
dividend of company and carry higher risk across all buckets.
 Venture Funding:- It is a form of private equity financing the venture capital firms
or funds to start-up business and emerging companies that have been deemed to have
potential growth to sustain in perfect competition market (Picciotto, 2017). As being