ABSTRACT
Sasha has decided to start a new business selling high quality dresses by mail order. She has asked her friend, Kristen, who is a designer, to assist her. Sasha goes to Venture Finance Ltd to seek funding for her project. She makes an appointment to see Colin, Venture Finance’s regional manager. She has approached Colin in the past for support for other business ideas, and knows that he can approve loans of up to £60,000 without approval from his superiors. Sasha visits Colin with Kristen. They initially ask for £60,000, but realise, in working through the project with Colin, that more capital is needed. Sasha eventually applies for £80,000. Three weeks later, Sasha receives a letter from Colin, in which he says that he can confirm that the loan will be available. A copy of this letter is sent by Colin to Kristen. As a result, Kristen sells £5,000 worth of shares which she has promised Sasha she will contribute to the business. Sasha and Kristen use this money to buy equipment for the business.
