ssets. Term loans are ideal for acquiring assets which take a while to produce income.
             Personal loans are used to buy specific items and generally offer relatively low interest rates, however, are often unsecured and are short-term. When seeking a personal loan, a few things need to be kept in mind. These are the purpose for the funds being sought, the length of time and the amount needed, how the business will meet loan repayments and the type of finance required.
             Hire purchases are used for the renewal and expansion of assets and generally offer a higher interest than overdrafts. The interest and the principal are repaid during the life of the arrangement and a hire purchase can be obtained through trading banks and finance companies. Hire purchases are medium term loans.
             A fully drawn advance is also a renewal or expansion of assets and the interest is usually slightly higher than an overdraft. There are also establishment costs involved at the granting of the finance and the interest and principal are both pair at regular intervals during the life of the arrangement. Fully drawn advances are available through trading banks and usually are up to 3 - 5 years.
             If Diamondstone decided to form a company/incorporate or additionally, decided to expand her business overseas, she would not be able to obtain finance through all of the finance options which are currently available to her.
             Some of the difficulties and risks, which Diamondstone is facing in her endeavours to develop her new product, the "hotel computer software package", are mismanagement, the lack of capital, getting external advice, and an unplanned financial structure.
             Mismanagement is that despite the fact that there has been adequate preparation in regards to taking on the responsibility of a managerial position; the workload is simply too much for one person.
             Lack of Capital refers to a lack of funds to establish her in a sound and financially stabl...