Two sources of finance can be recommended to this hot dog seller, willing to buy a van for its business purpose. It should be taken in consideration that the business is just starting so no retained earnings are available yet. A mobile hot dog seller cannot also issues shares. A loan can be an option to purchase the van. The seller will have to repay the amount of the loan borrowed and the interest but will not require sharing a percentage of its profit. He will be able to forecast the amount of cash flow needed regularly to cover the loan as amounts of repayments of loan and interests are known by both the lender and him. However, it may be difficult to get a loan has the business is just about to start. Furthermore, the seller should ensure that he will earn sufficiently monthly to pay the lender because if the seller’s debt increases, it can lead to bankruptcy. The most suitable source of finance, regarding the scenario, is the lease. It is advisable to contract a lease to get a van. It is commonly use for a business willing to take advantage of an asset over a certain period of time. The lessor will rent a van to the hot dog seller for an agreed period of time. Despite that the hot dog seller will not own the van, it will be in his possession to satisfy its business requirement. The advantages of contracting a lease in this case is to minimise costs spend on premises as the business is just going to start and also to be able to analyse the business performance before to invest in his own van. If the business is not working as he wishes, it will be easier for the seller to give the van back to the lessor, after the agreed period, rather than selling it lesser than the original price paid. Moreover, most of the times, the maintenance of the asset is guaranteed by the lessor. On the other hand, once again, over a long period of time, leasing can cost more than the original cost of the van due to the fees charged. Therefore, contracting a lease may be a suitable source of finance if agreed over a reasonable length of time.