When you’re preparing to start out on your new venture it is beneficial to be aware of the different finance options available to you, prepare the information you require to get finance approval and develop a good business plan. A business plan is an essential pre-requisite when you’re applying for business finance. That’s why we offer a template to assist you in preparing this important document. However, that doesn’t mean it’s something you write once for your loan application then leave in the filing cabinet. A well written plan is a tool you can return to again and again. What are my options for raising finance? There are a few different options for raising start up funds for your new venture. For more information read our article on Raising funds for your business. What information do you require? Most financial institutions will need specific information from you when considering your request for finance. Apart from a business plan, we look at the following: Details of the security you can provide to support the loan If youre purchasing an existing business, the latest available profit and loss statements and balance sheets (no older than 18 months) as well as estimates for the year ahead Personal income figures, balance sheet and bank account details. How do I complete a business plan? Your plan should clearly show the growth potential of your business and your financial needs. Some high level topics may include: Company and product overview SWOT analysis Business environment Company strategy Marketing plan Action plan. It should also include a financial plan which covers: Set-up costs Profit and loss forecast Cash flow forecast Balance sheet forecast Break-even analysis. The Australian government business website provides business plan guides and templates. I’m buying an existing business There are many reasons why you might prefer to buy an existing business rather than starting from scratch. From a funding point of view, it can be easier and cheaper to raise money to buy an existing business, as there may be less uncertainty when lending money. Other advantages of buying an existing business might include: Past financial statements may give a good idea of what to expect There may be immediate cash flow Existing goodwill with customers, suppliers and employees. Things you should know Credit facilities are subject to application and the banks normal lending assessment criteria.
Posted on: Tue, 22 Oct 2013 07:22:36 +0000
Trending Topics
Recently Viewed Topics
© 2015