Q. How do finance providers decide whether or not they will lend funds?
A. It depends on how long the finance is being provided, the amount provided, the reason for the funding, your company’s credibility and prospects of profitability. Most finance providers will ask to see a business plan to help them understand your company, its markets and your vision for its future.
Q. What should I include in a business plan?
A. You should include your current business status, management plans, a description of the market in which your company operates, an evaluation of the risks you’ve identified, the impact of new investment, and credible profit and cash flow forecasts.
Q. Why do I need to prepare a business plan?
A. To evaluate the risks involved in financing your business, a provider has to understand your company, its markets and competitors, your future plans, as well as the level and timing of expected profits
Q. How detailed should my business plan be?
A.The level of detail in a business plan depends on the amount and type of finance you need. As a general rule, the more finance required in relation to a company's asset base, the greater the risk and the greater the need for detailed analysis
|
