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Part 7: Funding Request
Written by: Plan Your BusinessArticle Overview: In this section, you will request the amount of funding you will need to start or expand your business. If necessary, you can include different funding scenarios, such as a best and worst case scenarios, but remember that later, in the financial section, you must be able to back up these requests and scenarios with corresponding financial statements.
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Part 7: Funding Request
n this section, you will request the amount of funding you will need to start or expand your business. If necessary, you can include different funding scenarios, such as a best and worst case scenarios, but remember that later, in the financial section, you must be able to back up these requests and scenarios with corresponding financial statements.
You will want to include the following in this section: your current funding requirement, your future funding requirements over the next five years, how you will use the funds you receive, and any long-range financial strategies that you are planning that would have any type of impact on your funding request.
When you are outlining your current and future funding requirements, be sure to include the amount you want now and the amount you want in the future, the time period that each request will cover, the type of funding you would like to have (i.e., equity, debt), and the terms that you would like to have applied.
How you will use your funds is very important to a creditor. Is the funding request for capital expenditures? Working capital? Debt retirement? Acquisitions? Whatever it is, be sure to list it in this section.
Last of all, make sure that you include any strategic information related to your business that may have an impact on your financial situation in the future, such as: going public with your company, having a leveraged buyout, being acquired by another company, the method with which you will service your debt, or whether or not you plan to sell your business in the future. Each of these are extremely important to a future creditor, since they will directly impact your ability to repay your loan(s).
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About the Author: Plan Your Business RSS for Plan Your's articles - Visit Plan Your's website Planning is critical to successfully starting and building a business. That’s why we’ve dedicated a section for it. Here you’ll find guidance on the tools and resources necessary to write a winning business plan. From sample plans to a business plan primer, we’ll get you started on this very important activity. Once your business is up and running, you’ll need to regularly review and update your plan to manage growth. Click here to visit Plan Your's website Part 2 Market Analysis Finding a Niche Part 6 Service or Product Line Part 4 Organization Management Is Entrepreneurship For You |
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