Matching Pairs B2 unit 10 Reading page 49Online version Which extract does each statement refer to? by Eva Maria Higelmo Martinez 1 Do not accept their money without signing a formal contract 2 As long as you can cover your debts, they are not worried about your ability to make money. 3 They may lend money where other institutions might be afraid to do so. 4 They may lend money in order to create employment 5 Be ready to share information openly with them in order to get funding 6 You must have property to guarantee the loan 7 You may pay less interest if you borrow money from them 8 They will become owners or joint owners of the business Venture capital is a general term to describe a range of ordinary and preference shares where the investing institution acquires a share in the business. You should prepare a written agreement about any loans. If you don't, bitter arguments will damage the relationship eventually Banks like to use assets such as premises, motor vehicles or equipment as collateral (or security) against loans. Venture capital is intended for higher risks such as start-up situations and development capital for more mature investments. Banks don't care whether or not your business has great profit potential. They are only interested in the business's ability to cover the principal and interest payments. Soft loans are normally subsidised by a third party so that the terms of interest and security levels are less than the market rate. Don't be embarrassed to show financial statements, tax returns or whatever else they want to see. Grants are normally made to facilitate the purchase of assets and either the generation of jobs or the training of employees.
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