Q. What are Sources of Finance?

No details are specified concerning the nature of a business to comment on and hence only general recommendations can be made. Given that fixed asset finance is necessary then it is long term finance that is likely to be most appropriate. Below are listed a few ideas of what might be most suitable

- If the fixed asset is considerable such as a new building or tooling for a new product then the Alternative Investment Market may be suitable. AIM is directed at small as well as growing companies who do not qualify for the main stock market. The restrictions for admission aren't that binding and may suit a company such as AIS Ltd. Particularly there are no eligibility criteria for new entrants in terms of size profitability or existence. By listing on AIM a company would attend to the market liquidity issue of equity investments for small firms.

- Venture capital may as well be suitable. This would be attractive from the point of view that whilst venture capitalists may take equity participation they are likely to liquidate their shareholders to the owners of the business and therefore ownership dilution would not occur.

- Cash or dividend retentions. This would obviously take time for major asset purchases and mayn't be suitable for companies that face a funding shortfall in any case the costs required in asset purchase may simply be too big for any realistic retention timescale.

- Entering a merger or partnership or else accessing "Business Angel" funding.

- Leasing the asset or else arranging secured loans at lower interest rates.

- Possible mortgages for buildings or else specialist financing for cars for example (contracts, HP, leasing).

- Availability of government allowances European funding or other agency assistance.