Question
Chairs n Tables is a relatively large Private Limited Company (Ltd) which sells big quantities of wooden furniture to businesses such as hotels, restaurants, offices,
Chairs n Tables is a relatively large Private Limited Company (Ltd) which sells big quantities of wooden furniture to businesses such as hotels, restaurants, offices, airports and cafes. Chairs n Tables sales are growing, but their production costs are quite high. Revenues for 2016 are at 6 million so far. Profits are expected to be around 1 million at the end of the year. To lower costs for the future, the company is planning on moving a major part of its factory to Poland in January 2017. It has identified a nice location near a big forest. The estimated cost of building the factory is 4.5 million (1 million for labour costs, and 3.5 million for construction materials). Please suggest 2 sources of finance which are appropriate for this situation. Why are these 2 sources suitable? Remember to give reasons.
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