Finance and Funding in the Travel and Tourism Sector

Source of finance which are available with Merlin Entertainment Plc to raise fund for business projects
Bank Loan: According to this, the firm which seeking for
financial, approaches up to bank which provide sum of
money to the management. It is one of the widely considered
source in order to raise fund from external ways or market. It
gives capital for every kind of business project like national,
international, regional etc. At the time of approaching for
loan, commercial banks evaluated business valuation and
then provide money. On the other side, it imposes huge level
of cost on Merlin Entertainment Plc in terms of interest
amount which affect profitability position.
European regional development fund: A source through which Merlin Plc can raise fund is
European regional development fund. It provides amount to those companies which belong from
European region only. It not allows those entities which are not originated or operate in Europe.
Further, according to areas or regions the fund is provided for various business projects and
complete goals and objectives. When the management of Merlin Plc is going to develop regional
projects then it helps to provide required capital. It not supports financially to the firm for
international level of business project. When looking at the cost aspect then it charges negligible
amount behind raising fund. The reason is that it has basic objective of developing region and
country.
Equity financing: Apart from this, a source in which
management issues shares through stock market
which will be purchased by shareholders is known as
equity financing. As per this, the company has to
complete listing process and then able to issue shares
in market. Amount at which shares of Merlin Plc
purchased by shareholders is used in the firm for
several business projects like national, international
or any other. Cost of finance of this source is in terms
of divided amount which depends on the profitability
condition of Merlin Plc.
Tourism fund department: In each country there are
departments made on the basis of industry like
manufacturing, tourism, textile, service etc. When a
company related to specific industry is going to invest
in business project then it approaches up to their fund
department and raise money. As per the current case
scenario, Merlin Plc operating in travel and tourism
sector where tourism fund department will provide
capital to it. Cost of raising fund from the mentioned
source is in very low as compared to other stated.