Problem:

Good Living Ltd., an owner-managed company, has developed the new type of heating using solar power, and has financed the development phases from its own resources. Market research points out the possibility of a large volume of demand and an important amount of additional capital will be required to finance production.

Required

problem 1: Advice Good Living Ltd. on three (3) advantages and three (3) disadvantages of loan capital.

problem 2: Briefly describe four (4) various types of finance likely to be accessible and the sources from which they may be acquired.

problem 3: Advice on the techniques of finance likely to be most satisfactory to both Good Living Ltd. and provider of funds.