finance and funding

P4 Sources and distribution of funding for the development of capital projects associated with tourism.
Background
Sources of funds are very important for every business.
They play an important role in order to raise finances of
organization. In the context of travel and tourism
sector,both public and pricvate authorities take resort of
financial sources for meeting requirements pertaining to
capital projects.
Capital projects.
The capital projects are those projects in which cost of
the product get depreciated. In travel and tourism
sector capital projects are of various types.
These includes development of small scale heritage,
interpretation boards, improvement of conditions of
environment, development of cycle route, tourism
information point.
Sources of funds
Business is worthless without money. business activities uses the sources of
funds to make it complete
There are various types of sources of funding like venture capital, equity
finance, angel investors, subsidies and credit. Selection of sources can be
done on the basis of capital projects which are required in travel and tourism
sector.
Advantages of sources of funds
Bank Loans : in bank loan bank do not
takes the owner ship of the business. It
provides the option for fixed rate loan
where the intrest are not vary.
Equity : in equity financing compay do
not need to repay the capital ammount.
Government grants : It provide the large
number of funds for investment in capital
projetcs as well as to the business.
Types of funding
Funding are of two types, public and non public subsidy. Public funding
refers to those funds which are provided by central as well as the state governments.
While private funding are those which are provided by financial institutions to
companies in order to raise the finance. Selection for funding can be done on the
basis of requirements of capital project of travel and tourism sector.