Request For Financing

What documents will you need to support your request for financing?

Apart from certified copies of the basic company registration forms and the Memorandum and Articles of Association, the following will be required by the potential financiers:

1. A detailed Business Plan

2. Cash flow analysis

It is important for you to gain the confidence of your potential financiers. They have to feel confident in your business, your management team, your business concept and its potential.

Preparing a Business Plan and Cash Flow Projection

A business plan describes the market in which your business operates, identifies and evaluates the risks, shows the impact of new investment and provides credible cash flow and profit forecast. For more information about what to include in a business plan see the section on creating a Business Plan or visit www.bplans.com/ or www.bizplanit.com/vplan.htm.

The extent of detail in any business plan depends on the amount and type of finance sought. As a general rule, the more finance required in relation to the value of the company's assets, the greater the risk and the greater the need for a detailed analysis.

A cash flow projection is a forecast of actual cash inflow or outflow from your business. It is key diagnostic tool for measuring your company's health.

A good cash flow projection will:-

tell you when and by how much, your available cash will rise and fall
where your cash is coming from and what it will be spent on
your ability to sustain the business
tell you whether you can plan for growth.

To produce a cash flow projection you must forecast sales and expenditures and identify the actual dates of revenue collection and payments.