Equity Contribution

 

Money invested in the company such as loans or equity contributions from the associates are capital. Capital will be used to provide the company access to permanent one off fixed assets such as; the rent for the building, vehicles, furniture, and computers any left over money will contribute towards employee payroll and bills. More working capital will be needed compared to other business due to extended periods involved within construction. The working capital can also be financed using an overdraft which will be attached to our business bank account.

 

Receiving loans will create Liabilities which are owed to the bank to be paid off over the five years. The bank loans are structured as follows;

o    Year one  £25000

o    Year two £25000

o    Year three £25000

 

These loans will be a capital loan resulting in an interest rate of 6% therefore a total of £736 will be repaid to the bank per month. Starting from month one of the business start-up.

Due to our location in Nottingham’s creative quarter in Hockley a grant is available ‘Nottingham Technology Grant Fund (NTech)’ this is a grant so would not need to be repaid the grant would be for £50000. Our business would be eligible for this grant due to the fact we are a creative studio aiming to design creative office solutions. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rates

Interest rates are based on current interest rates and are subject to changes, these are the rates used to calculate the fees in this document.