After outlining the costs associated with the project, you can then move into how you will be paying for the project. It is best to list this into a table as well. Outlining the source of the funds, terms of repayment, and if it hasn’t already been secured, the likelihood of securing it, and the stage you are in the process of receiving it. Below is a list of potential sources of cash.

Loans

When considering debt financing, it is important to include all the sources of financing, the instrument (Loan, line of credit, Overdraft…) being used, and the terms of the instrument, such as the interest rate and portion of payment in interest, principal payments amount, the amortisation period, and the term period. To learn more about loans you can look at the financial help section of the guide.

Investors

Here you would list the investors and their stake in your business and the terms for their purchase. You should include if they are silent partners (in which they put-up money with the expectation of an agreed upon payment of dividends in the form of preferred shares). As well as the various share classes that the partners might have when they invested in your business.

Grants

When it comes to grants you should outline the title of the grant as well the terms to the grant. When looking for grants there are various resources you can utilise which are outlined in the financial help section of the guide.

Vendor Take-Back Agreements

Typically, unique to purchases of a business, this is essentially a loan from the previous owner to the new owner, in which you pay them the amount of the business over a period, with terms that are independently worked out in the sale agreement.

Personal Investment

The most important part of the investment, as no other funder will take you seriously if you are unable to contribute some amount of personal capital or stake. So here you want to include what you are using to fund the project. This can include in-kind investments, such as assets you have and personal hours. Additionally, and most importantly, the proportion of cash you are using to finance the business. Keep in mind that many investors, have certain requirements on the proportion of personal investment.

Inflows and Start Up Costs

Cashflow Projections