Setting up a new Business
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Insurance Companies
We would establish links with various insurance companies. Northern Star would offer travel insurance for £7 per person if there were one person under the age of 16 and over 20 people. We could offer a slightly higher price to the public and gain some profits. They would also offer material damage and theft insurance for £120 p.a. Natwest would offer the compulsory employers liability insurance for £200 p.a.
Sources of Finance
A bank loan will be initially available to the business. This provides a lump sum that is repayable with monthly instalments, which would make setting up easier in the first two years. A fixed interest rate will be supplied making the repayments more costly in the long-term, but provides capital for start up costs and will help with the initial losses. HSBC would offer a loan of £10,000 at 11.9% APR over a period of 36 months at £328.80 a month. Total repayment would be £11,836.60 meaning a long-term loss of £1,837. This is quite substantial, but allows for the business to be able to set up and market adequately. Security would have to be p ...
