Business Plan Funding
Getting funding for your business is provided by investors, and is typically based on a company's business plans' ability to show how much money is needed, how much money is going to be made, and how the investor will benefit. A well-crafted business plan offers a glimpse into the past, present, and future of the company. Generally the funding is awarded based on financial projections that usually include a 2-3 year cash flow forecast, 3-5 year financial information forecast, and a detailed and specific plan on the how the loan will be repaid. There are two basic types of business plan funding: debt and equity. Debt funding is where a company borrows money (as with loans) and must pay it back with interest in a timely manner. There are many sources for debt financing: traditional bank loans, savings and loans, commercial finance companies, and the U.S. Small Business Administration (SBA) are the most common. Usually, these sources are best for companies that have a high ra...