Capitalization | Sources and Uses of Funds

What is a sources and uses of funds section in a business plan, a sources and uses of fund section is a summary of how much money will be required for startup expenses and operating capital, and where you expect that money to come from..

The sources and uses of funds section of a business plan is an important financial component that outlines where the funds for the business will come from and how they will be used. This section typically includes information on the business’s funding requirements, the sources of funding that have been secured or are being sought, and a detailed breakdown of how the funds will be used to support the business’s operations and growth. It is important for a business to have a clear understanding of its funding needs and how the funds will be used in order to attract investors and secure financing.

The level of detail in the sources and uses of funds section of a business plan can depend on the intended audience and purpose of the plan. For example, if the plan is being used to attract investors or secure financing, it may need to be more detailed and include specific numbers and projections.

In this case, the section should include spreadsheets or tables that clearly show the funding requirements, sources of funding, and detailed breakdown of how the funds will be used.

If the plan is being used as an internal tool for current investors or the board, it may be more high-level and not include as much detail. It should still however, provide a clear overview of the funding needs, sources and usage of funds.

As a best practice, it’s always a good idea to include financial projections in the form of spreadsheets or tables, this way the audience can see the financial viability of the business, in a clear and easy-to-understand format.

Why the Sources of Uses of Funds Section is Vitally Important

Many entrepreneurs and business owners rely far too much on intuition and positive expectations. “I’m not an accountant” is not a good enough reason to forego having an understanding of the basics of cash flow. Of all the traditional financial statements including the balance sheet and income statement, a reliable cash flow statement is most important. The sources and uses of funds section of your business plan is in effect a high-level cash flow statement for investors. The primary purpose of fund statements is to demonstrate that the business will have sufficient capital to start, grow and thrive.

Your company’s financial health is critical to investors and the use of funds document is a simple financial statement they’ll expect to see.

If Charles Lindberg or Emelia Earhart came to a group of equity investors or providers of debt financing, they probably would have known very little about transatlantic flying, particularly since it had never been done. But the business minds would have quickly converged on the sources and uses of funds statement. The investors would want to know that the funds statement accounted for sufficient capital to build the plane and fly it across the ocean. After all, who would want to provide funding to get a plane halfway across the ocean?

Now, this a light-hearted way to talk about a funds statement, but it makes the point: Your sources and uses of funds statements will ensure that you have thought through the business requirements and are raising sufficient capital to get your business to the next investable milestone or profitability.

Creating Your Statement of Sources and Uses of Funds

The various sections of your business plan spell out how you will go about finding new customers, creating products and services they need, and building your business. The details regarding the costs and revenues from your “word plan” make it to the “numbers plan” in the financial section. So, what’s left?

This section on Capitalization and Use of Funds summarizes how much money will be required for startup expenses and operating capital, and where you expect that money to come from. Show your financial needs for a minimum of one year into the future, or until your business will become cash-flow positive, whichever is longer.

Business Plan Outline for Capitalization and Use of Funds Should Include:

Use of Funds

Startup Costs

Working Capital

Sources of funds.

Owner’s investment

Debt or senior debt (from lenders)

Equity (from investors)

Important Considerations

This section of your business plan is intended to provide an overview of the funds your business will require. The specific details regarding terms for investing in your company must be in a separate document, which will be governed by specific legal guidelines. By law, securities can be offered for sale or solicited only by a private placement memorandum, which is a formal legal document.

Start with the Use of Funds Section

The Use of Funds section of your business plan must include all of the costs required as well as the capital to sustain your business until it becomes cash-flow positive. The initial costs are those costs required to open the business. Working capital is the money it takes to pay your bills (including labor) until your business is generating sufficient cash to fund itself. Your financial projections (Section 9) will have taken you through the hard work required to arrive at these numbers.

A simple table or spreadsheet should be used to show your use of funds or costs. Summarize costs into major categories. Customize the example below for your business. Most importantly, include all expenses that are listed on your financial statements.

For the working capital number, look at your cash flow statement. If you had no funding whatsoever, how much money would your business consume before it starts to turn a profit or become cash-flow positive? That’s how much working capital your business will need, plus a contingency fund.

The example below is meant to be easily understood and is modeled around a startup business. It also includes rolled up numbers at a high level. It is okay to present your numbers in this manner, so long as you have the detailed version –that totals to the same amounts- if asked.

Sample Start-up Costs

Office Build-Out     $12,000

Prepaid Rent     $ 4,000

Office Equipment     $ 6,000

Grand Opening     $ 3,000

90-Day Ad Campaign  $ 5,000

Website Design   $  2,000

Administrative Costs

Insurance     $2,000

Fees & Permits    $ 1000

Miscellaneous Startup Costs, $15,000

Total Startup Costs     $50,000

Annual Salaries for 3 employees $300,000

Contingency capital funds $50,000

Total W/C      $350,000

Total Use of Funds      $400,000

Let’s start with the obvious. The sources of funds needs to meet or exceed the use of funds from the section above.

Now that you have laid out the financial needs of the business, where will that money come from? Ideally, at least some of that will be coming directly from you. Perhaps you’ll even include a “family and friends” round of investment. The balance will be the amount you need to bring in either as loans or outside investments. Customize the example below to your business.

Sources of Funds Table

Owner’s Cash Investment $50,000

Family and Friends Investment (Equity) $20,000

Loan Sought $330,000

While you don’t have to include it in your business plan, you should be prepared to talk about your collateral, or how you will guarantee that the lender will be repaid. Most financial institutions require a primary and secondary source of collateral. This topic is covered in the section titled, Exit Strategy or Payback Analysis.

Many people think about the balance sheet and income statement as the most important financial statements. It’s the cash flow statement that tells most about the company’s financial health and ability to continue. The “sources and uses of funds” section of your business plan is a means of looking ahead at the cash flows of the business – both incoming and outgoing – to determine how much cash you’ll need to raise.

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A solid business plan is one of the most important documents you’ll need to create for your company. This document provides a roadmap for your company’s future developments. However, no growth can occur without a sufficient amount of working capital. That’s why your business plan should include a source of funds section – it can remind you how to maintain the cash flow your company needs.

Apply for an SBA Loan

There’s another reason this part of your business plan matters. It can show certain lenders how much money you need beyond what the funding sources in your business plan can get you. That said, not all lenders will require you to share a business plan. For example, SmartBiz’s loan approval requirements don’t include business plans among the necessary paperwork. Either way, below are some source of funds examples in business plans.

What is a business plan?

A business plan is a document that guides your company’s growth. It helps define your business goals and provides a clear overview of how you’ll achieve them. You can also use it to plot out your marketing, operational, and sales approaches. Your business plan can be the foundation of a strategy to minimize risk and maximize growth.

Another reason why solid business plans are essential is that you’ll often need to provide them as you apply for business loans. Business plans provide an in-depth look at a company’s plan for profits, so lenders can more easily judge the borrower’s likelihood of repayment. Lenders are much more likely to finance borrowers whom they believe can pay back the loan amount in a reasonable timeframe.

8 source of funds examples

Having a source of funds – sometimes several sources of funding – is vital to growing your business . Common funding options include business loans, and sometimes, to qualify for them, you must show lenders your other funding sources. Understanding the below source of funds examples in business plans can help you better structure yours.

1. Personal savings

When you’re just getting your business off the ground, sometimes, the fastest way to fund it is directly from your current savings. However, entwining your personal savings into a company that could fail is a risky prospect – but it also shows commitment. Lenders and investors often respond well to a borrower who’s ready to go the distance with their ideas.

2. Money from friends and family

Money from family and friends, which you’ll also see called “love money,” is a viable source of funds in your business plan. However, just as it’s risky to get your own money wrapped up in a business, it’s dangerous with other people’s finances too. Plus, accepting money from a loved one can come with drawbacks. For starters, not everyone in your life has much to spare in the first place. Furthermore, if you borrow money from friends or family and you can’t repay it, the relationship could be damaged.

3. Federal and private grants

Occasionally, your business model can put you in line for federal grants. That said, rare is the business that qualifies for federal grants – technically, the government does not provide grants for small businesses growth. However, private companies ranging from FedEx to the NBA offer grants to small businesses that fit certain criteria. If there’s a chance your company could fit these criteria, you can include private grants as sources of funding in your business plan.

4. Share sales and dividends

Selling shares of your company to investors – as in, anyone who buys stocks – falls under a category of funding known as equity financing. This arrangement can be lucrative, which is a main reason why you see so many companies having initial public offerings (IPOs).

However, equity financing has a few drawbacks. For one, you’ll no longer have complete control over your company's future, as stockholders dilute your ownership. Additionally, you’ll have to account for dividends in your financial planning. You pay these sums to your shareholders every quarter.

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5. Venture capital

If you need a large amount of cash, venture capitalists can be a viable option. Typically, though, venture capitalists are only interested in funding startup businesses in the tech sector with high growth potential.

Venture capital is a high-reward but high-risk funding source. It often requires you ceding a certain amount of ownership – and thus control – of your business. Furthermore, if your business fails, you may still need to repay any venture capitalists or firms that have funded your operations.

6. Angel investors

An angel investor is a wealthy private individual who invests in small businesses to help them get off the ground. They tend not to offer as much starting capital as a venture capitalist, but they can make up for the smaller amount with experience. Angel investors are often experts within a specific industry and put money back into it by investing in newer businesses within that sphere.

Although you’ll have to give an angel investor some control over your company, their experience and network can help your business grow. Additionally, the word “angel” in their name reflects that they typically don’t ask for their money back if your business fails. That makes them a safer bet than venture capitalists.

7. Business incubators

Unlike the previous funding options, a business incubator doesn’t offer direct monetary support. Instead, incubators help fledgling businesses thrive by allowing them into their workspace and letting them share resources as they get started. This type of funding is indirect – you’ll rarely get direct cash infusions, but you’ll get resources that would otherwise cost you money. It’s common in high-tech industries such as biotechnology, industrial technology, and multimedia.

8. Bank loans

Bank loans probably ring a bell for you. When a current or aspiring small business owner needs additional funds, these loans are often the first thing that comes to mind. They’re among the most in-demand funding options available given their large funding amounts, long-term repayment periods, and low interest rates . However, their high amounts introduce lender risk that can make them difficult to obtain. To minimize risk, most lenders impose strict qualification criteria that you might not make.

Why do you need to provide sources of funds in your business plan?

Providing a source of funds in your business plan paves a path toward obtaining and using your funding. Knowing where your money is coming from and what you’re spending can help with strategic financial planning. It also minimizes the chances of your business partners spending money the company doesn’t actually have.

In a lending context, your sources of funds may help you qualify for any loans you need in the future. Depending on the funding sources you’re using, lenders may view you as someone able to repay the debt financing they offer. For example, using personal savings shows your commitment to your business, meaning you’re likely a reliable borrower who won’t flake on a loan. You’ll show your commitment to your company and your business at the same time.

Parting thoughts

Reliable funding sources are essential to achieving your company’s objectives, and their presence in your business plan can help you obtain more funding. Namely, certain entities that offer small business loans require business plans as part of the borrower approval process. When your approval plan clearly shows why you need the loan money and how else you’re getting funding, lenders may trust you more.

However, certain lenders don’t require business plans. In fact, when you apply for SBA 7(a) loans , bank term loans, or custom financing through SmartBiz ® , you don't need a business plan. Check now to see if you pre-qualify * – the business funding you need might be closer than you think.

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How to Prepare a Sources and Uses of Funds Statement

FUND TRANSFER

What Is a Sources and Uses of Funds Statement?

The sources and uses of fund statement is an accounting statement that summarizes the financial statement and financial plan . It shows the sources from which a business or a company obtains its cash and the uses to which this cash is put during a trading period.

Large companies and businesses include sources and uses of funds statement in their annual report . It is their way to show the lenders how much they need for a startup financial and how much collateral they will contribute. Creating sources and uses of fund statement is also one of the ways to strategize business financially.

The Sources and the Uses

Let us take a closer look at the sources and the uses of funds.

Sources of funds. The sources of funds is where all the money for funding is going to come from. For example, you may be providing furniture for your office, getting a loan to purchase equipment, or getting a line of credit for working capital.

Uses of funds.  The money needed for various purposes for business startup. This includes:

  • The beginning quantities of supplies, equipment, and furniture.
  • Purchase of building or land.
  • Costs of deposits for rent

What Is the Statement of Sources and Application of Funds?

The statement example in word  of sources and application of funds shows the total sources of new funds that are generated between the balance sheet dates and the total uses of those funds in the same period. it is also made up of a list of the changes that occur in all of the Balance Sheet Items between any two balance sheet dates.

The statement of sources and application of funds will exactly tell where the company got their money from and detail how the money was spent. It also tells whether the management plan has made reasonable investment decisions.

Steps in Creating a Sources and Uses of Funds Statement

As we have already learned in this article, there are two sections of the statement example in excel for funds: the sources and the uses. Here are the steps in creating the sources and the uses in the fund statement.

  • In the first section, which is the uses of funds, use the subtotals from your startup costs worksheets, such as the facilities, equipment and vehicles, supplies and advertising, and other startup costs. After that, total those numbers.
  • Include an estimate of your working capital needs. The working capital needs are the amount of money you have to obtain in order for you to pay the bills while you are still establishing your business analysis .
  • To determine the total use of funds, Add the total of startup funds and working capital needs.
  • Equity in your company
  • A savings account
  • An IRA (Individual Retirement Account)
  • The difference of the total of the uses of funds and the total collateral you are providing must be equal to the amount of financing needed.

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Building a Strong Business Plan with the Use of Funds Slide

September 26, 2023 / Blog

use of funds in business plan example

A well-structured business plan outlines a business’s vision, mission, and strategies, providing a roadmap to success. However, one pitch deck slide that often stands out for investors and lenders alike is the Use of Funds slide.

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Let’s explore why a business plan is essential , what the Use of Funds slide entails, and how to make it an asset that propels your business forward.

The Role of a Business Plan

Before diving into the specifics of the Use of Funds slide, let’s take a moment to understand the broader role of a business plan. It’s not just a document; it’s the blueprint for your business’s future. A well-crafted business plan:

  • Defines Your Vision : It lays out your business’s purpose, mission, and values. It clarifies what your company stands for and where it’s headed.
  • Attracts Stakeholders : Investors, lenders, and partners often require a business plan before committing their resources. A solid plan can captivate their interest and support.
  • Guides Decision-Making : It’s your compass for making informed decisions. From marketing strategies to financial projections, your plan ensures you stay on the right track.

use of funds in business plan example

Understanding the Use of Funds Slide

The Use of Funds slide offers a snapshot of how you intend to allocate the capital you seek . It’s not just about stating the sum; it’s detailing where every dollar will go.

What Is It?

The Use of Funds slide is a visual representation of your financial strategy. It succinctly outlines how much money you need, what you’ll use it for, and over what timeframe.

Why It Matters

This slide is a make-or-break element of your plan. Investors want to know that you will put their investment to good use—and this slide tells them precisely that.

The Use of Funds slide is typically in the early parts of the financial slides, right after your funding requirements. It sets the stage for the nitty-gritty financial details that follow.

Components of a Strong Use of Funds Slide

A compelling Use of Funds slide isn’t just about numbers but displaying clarity and precision. Here are the key components you should include:

  • Funding Allocation : State clearly how much capital you’re seeking. Be specific. Investors appreciate a precise figure.
  • Purpose of Funds : Detail what the money will be used for. Whether it’s product development, marketing, or hiring, be specific about your intentions.
  • Timeline : Investors want to know when they can expect to see returns. Include a timeline indicating when the funds will be deployed and when results are anticipated.

Clarity is Key

Avoid vague or ambiguous language . Make it easy for anyone reading the slide to understand where the money is going.

Aligning the Slide with Business Goals

Your Use of Funds slide shouldn’t operate in isolation. It should seamlessly align with your broader business goals and strategies. Here’s the reason why alignment matters:

  • Credibility : When your Use of Funds slide harmonizes with your business strategy, it instills confidence in investors. They see that you have a cohesive plan for success.
  • Supports Strategy : Ensure that the allocation of funds supports your overarching business strategy. If you’re emphasizing growth, allocate funds accordingly.
  • Transparency : Investors appreciate transparency. They want to see a logical connection between the capital you’re seeking and your business’s goals.

Addressing Risk and Contingency Planning

Investors are savvy individuals. They understand that risks are inherent in business. Thus, addressing risks in your Use of Funds slide demonstrates foresight and a willingness to adapt.

Risk Mitigation

Alongside the allocation of funds, consider including how you plan to mitigate risks . For example, set aside a portion of funds as a contingency for unforeseen challenges.

Contingency Plans

If your business faces a particular risk, such as supply chain disruptions, mention how you’ll navigate these hurdles using the allocated funds.

The Use of Funds slide is a pivotal element within your business plan, captivating investors and ensuring the alignment of financial strategies with broader business goals. By crafting a clear, precise, and well-thought-out slide, you set the stage for attracting support and achieving success in your entrepreneurial journey.

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How to Manage Business Loans After You Receive Funding

Posted june 9, 2021 by diane gilleland.

use of funds in business plan example

So you landed some funding for your business. You finished writing a solid business plan and used it to apply for a small business loan, or perhaps you made a successful pitch to investors . Either way, congratulations!

Now comes, possibly the more difficult part of receiving funding, managing it. 

The importance of managing your business finances

Consider this: When you wrote your original business plan, there were things you didn’t know. It’s true for every entrepreneur . No matter how much expertise you have in your field, there are always aspects of running a business that you won’t understand in advance.

This is completely fine because you’ll learn as you go. But that learning needs to be captured and acted on quickly, so your company can stay solvent. And this is where doing more use of funds reporting can really help you—not from a planning standpoint, but from a management standpoint.

The more you know about how your business is performing, the more you review and revise expectations, the better prepared you’ll be to take strategic action. 

4 steps to manage small business finances and strategically use your funds

We’ll dive into specific funding scenarios later on in this article, but for now, here are the 4-steps you should take to better manage the cash you received.

1. Compare your forecasts to actual performance

Similar to how you don’t have all the answers regarding how you’ll actually spend funding before launching your business, your other projections likely aren’t perfect. Forecasting isn’t about seeing into the future, but making educated guesses regarding financial performance, market factors, and customer interest. And when you’re a virtually new business, you’re typically basing these assumptions off competitors or industry benchmarks, not previous sales or cash flow data.

So, rather than working off of outdated assumptions, the best thing you can do is compare your forecast to how your company actually performed . Doing this on a monthly basis helps you quickly identify where real-world sales and costs deviated from your projections. 

With LivePlan’s Live Forecast™ feature , you can make these adjustments with a single click and start your analysis directly within your Profit and Loss Statement. This allows you to spend less time updating your forecasts, and more time exploring what changes you should be making based on actual results.

2. Adjust your forecast

The other piece of comparing your forecasts to actual performance is revising your forecasts with actual sales data. We call this adjust to actuals, and doing this practice regularly ensures that your upcoming projections are always more accurate than the last. This ensures that you won’t be surprised by dips in sales, a lack of cash, or not having enough supply to satisfy demand.

3. Review your cash runway

Part of revising forecasts based on actual performance is looking at your cash burn rate and understanding your cash runway. These metrics tell you how quickly you are using up your funding and how long you have left until it potentially runs out. You’ll want to look at your projected cash flow statement to fully understand how solvent your business is in the coming months.

4. Make a plan and set milestones to bridge that money gap

Keep in mind that, especially for startups, you’ll probably be looking at a hefty burn rate and negative cash flow in the first few months. That’s perfectly ok, but you want to be sure you have milestones in place for when you need to see your cash intake flip to positive. Otherwise, you’ll keep on burning through cash thinking it’s perfectly fine until it’s too late.

This is when you should revisit your overall business plan once again, and revise or adjust any initial milestones you have. Just like forecasts benefit from adjusting to actual results, your overall strategic plan does as well. You’ll want to consistently revisit elements of your plan over time and keep them up to date. That way it can be used as a management tool rather than just a static plan that helped you get funding.

Tips for managing your small business finances

Having a system in place to manage your finances is an excellent first step. Putting it into action can be a bit difficult at first, so here are some additional tips to help make it a consistent process.

Start with your business plan

When you built your business plan , you likely included a section that explained how you plan to use the money you requested from lenders or investors.

This probably looked like a report on “use of funds” (or “use of proceeds,” as it’s sometimes called). It’s a standard part of writing a business plan to get funding. A use of funds report is a simple statement of why you need the funding and how it will help your business.

Since there are so many ways to use funding (purchasing equipment or other assets, adding staff, expanding marketing, and so on), a use of funds report can take the form that best meets your needs. It might be a spreadsheet, a forecast, or simply a few paragraphs of text.

And now that you have that cash in hand, it’s tempting to think that your business plan has done its job, and now all you have to do is use the money. But many entrepreneurs fail because of this exact belief. They haven’t quite thought through all the ways their original plan will probably change over time, or how to manage their funding while they navigate these changes.

Revisit and revise your forecasts and strategy

Peter Gregory, chairman, and CEO of Green Energy Corp currently uses LivePlan to do strategic planning, use of funds management, and reporting. He is a vocal advocate of doing the process we just walked through early and often.

“If you spend the last 10 minutes of every day looking at your actuals and updating your forecast , then you can get your monthly reporting done in as little as 10 minutes,” says Gregory. “If you wait three months to check in with your numbers, then it’ll take more like four hours to build your report. If you wait a year to look at your numbers, you’ll spend three months coming up with a report.”

“It’s a little like cleaning the shower —if you do it often, it’s no big deal. Wait a year to do it, and you’re going to have to hire a contractor to come rip out your shower.”

Prepare for positive and negative outcomes

As Peter Gregory says, “Keep in mind that good news, as well as bad, can affect your cash flow.” A large, unplanned expense can cause you to run short of cash down the road. But a large, unplanned revenue event creates an opportunity to invest in growth. Either way, the sooner you know what’s happening, the more effectively you can react. By staying in touch with your forecast in this way, you’ll be much better able to see your future.

The cash flow statement, then, becomes a kind of crystal ball. If your forecast is up to date, then you’ll be able to see, on the bottom line, exactly when your cash will dip into the negative:

use of funds in business plan example

These are the months when you’ll plan to use your line of credit, and now you can see the amount you’ll be using. With this visibility, you can plan your spending effectively. Not only that, you’ll be able to see what funding you might need a year from now, and that gives you time to find it.

The worst moment to discover that you’re running out of cash is the moment when you’re actually running out of cash.

Stay on top of anything associated with your funding

Aside from the internal management of your funding, you’ll need to be aware of and effectively track some external factors as well. These may be directly tied to your funding, or are elements that can affect your business due to bringing on debt. Here are a few additional things to consider:

Keep track of your credit

Depending on the type of funding that you acquire, it can have an impact on your business credit score . A loan or line of credit specifically, will either add a new amount of debt to your credit report or increase the amount of available credit you have available. Taking on debt is a common part of business, but you want to be sure that when you do, you’re keeping track of your credit score and doing everything you can to improve it.

In general, you want to be aware of the following:

  • Your payment history and overall repayment timeline
  • The amount borrowed compared to the amount of credit you have available
  • How long your credit has been on file
  • The number of credit inquiries you have outstanding
  • The types of credit and debt you have

In short, you want to make sure you’re making payments on time, lowering your overall debt to healthy levels, and have enough available credit to leverage in a crisis. Doing so will not only improve your credit score but make it easier for you to negotiate future loans and funding with favorable terms.

Leverage available cash

You’ve likely acquired funding to grow your business. As you begin to do so, you may find that you have more available cash than you initially forecasted. In this situation, it can be tempting to immediately go outside of how you initially scoped out your use of funds. Instead, it may be wise to use that extra cash to pay off higher debt or loans that you currently have.

Now, you don’t want to make this decision blindly. Thankfully, by leveraging this process and consistently reviewing your position, you should already have been making necessary adjustments. If you really have excess cash, having this prepared can make it far easier to determine where it could be reallocated, and how much can simply go toward paying off your loans.

Avoid new debt

As you manage the funding you’ve acquired, it’s important that you avoid bringing on additional debt if possible. You want to be sure that you’re able to effectively turn the debt you have into profit. So, first and foremost you want to be sure you’re able to make payments on time.

If you’re struggling to do so or find that the funding is not leading to growth like you initially expected, it’s time to identify some cost-cutting strategies. If you bring on more funding, loans, or any other type of debt in this situation, it will simply stack on additional risks that you may not be able to handle.

Stay in touch with your lender

Once you receive any form of funding, you’ll want to remain in touch with your lender. This ensures that you are actively addressing any questions, concerns, or potential changes that you or the lender have in mind. This may include things like:

  • An extension or adjustment of the financing terms
  • Adjustments to your repayment plan
  • Interest rate adjustments
  • Delay of payment

More than likely, you’ll also need to report on the way you use the funds in some way. Let’s dive into how to create a use of funds report. 

How to report your use of funding

If you built your business plan in LivePlan, then you’re halfway to your use of funds report already. You can easily update your forecast, and see a visual comparison between your forecast and actual performance in the Dashboard tab . You can even generate reports for your investors or management team at any time.

You’ll need to do this reporting no matter what kind of funding you’ve taken on—a loan, line of credit, or angel investment. Let’s look at the specifics of the use of funds reporting for all three kinds of funding. 

Do keep in mind that the reporting we will be walking through is based on how you do it in LivePlan. But the processes and methodology still apply even if you don’t currently use this planning tool.

use of funds in business plan example

Use of funds reporting if you’ve received a loan

When a bank loans you money, you aren’t required to formally report back to them on how you’ve used it. But you’ll want to maintain a personal record of what expenditures you’ve made with the funds, and how soon your funds might run out.

If you’re using accounting software like QuickBooks or Xero , this record will happen as part of your accounting, but if you are not yet using accounting software, you’ll want to keep an accurate record of your spending.

If you took on a loan of a specific amount, earmarked for a specific set of purchases, obviously that’s a simple picture. The money comes in, and you spend it on what your business plan said you were going to spend it on. And then you make sure that these expenditures are represented in your forecast.

The LivePlan Schedule tab can be very helpful in planning this kind of spending. Major business expenditures, such as buying equipment, often have important deadlines tied to them. It’s also possible that the loan you’ve received has deadlines attached to it as well. You can create milestones with due dates in LivePlan for these deadlines, which helps you and your team stay on track.

milestones for spending

Use of funds reporting if you’ve received a line of credit

Another common type of lending small businesses use is a line of credit —a revolving loan that you can draw on and pay back as needed. When you’re managing a line of credit, LivePlan can not only help you track your use of funds, but it also helps you predict exactly when you’ll need to use that line of credit to bridge future gaps in your cash flow.

It all begins with your business plan forecast . When you take on a line of credit, you’ll first enter it in your forecast. Then you’ll make monthly predictions about your spending, entering them as dollar values in each month.

As the months’ progress, check in on these values and make sure they represent your actual spending picture. Doing these regular checks will keep your cash flow forecast up to date, giving you a more accurate picture of what your cash will look like in upcoming months. A good entrepreneur regularly updates her forecast, so it reflects any unexpected expenses (or earnings) month to month.

unexpected expense entry

When you were pitching to investors , it’s likely you showed them your early use of funds report, so they could understand how you were planning to spend the money. Now that you have an investor, you’ll need to submit a use of funds report to them regularly.

The frequency and level of detail in your reports will usually be dictated by the investment contract you’ve signed, but it’s good to plan on reporting to your investors monthly. (Or if you like, you can always send your investors an invitation to your LivePlan account , so they can check on the data whenever they want to.)

The process for preparing these reports is the same as the process we recommend above for managing a loan or line of credit. You’ll regularly:

  • Check your forecast against your actual performance
  • Update the forecast
  • Look for future cash flow problems, and make a plan to solve them

The only difference is, in this case, you’ll need to make a presentation of your findings to the investor. Most investors will want to see a set of projected financial statements— profit and loss , balance sheet , and cash flow . You can print these from the Forecast tab in LivePlan.

Investors want to see how you react to the unexpected

Your investor will also want to see how you’re reacting to the unexpected events that pop up as your company operates.

“Investors want to know how their money is being used now, and how it will be used it in the future,” says Gregory. “That future picture can shift over time, so it’s important to be able to explain what that means to the investor. Investors are used to seeing companies change. They just want to know that you’re on top of it, and what the next 12 months to three years look like. That way they can either plan to invest more or not lose more.”

Not only that, an entrepreneur who keeps up on her forecast has more value for investors. “An investor would much rather see your forecast evolve into a target you can hit,” says Gregory. “It doesn’t help anyone if you stick to your original forecast goals and don’t meet them. Investors want to know that you can use this month’s numbers to plan a realistic future. That gives them more confidence, so they’re more likely to stay with you.”

Funding is cyclical

Many new entrepreneurs think that their initial funding is all they’ll need and that the business will be funding itself by the time that borrowed or invested cash is spent.

In reality, however, a business will likely need to seek funding more than once in its lifetime. According to a 2017 Federal Reserve survey of small businesses, over 60 percent needed additional funding to either grow or resolve business challenges.

There could be a temporary dip in your market or an unforeseen pandemic , and you’ll need bridge cash. Or there may be times when you’re ready to grow the company in a new direction, and you’ll need an infusion of cash to ramp up. 

This is why good use of funds reporting is so important. The more you can show that you’ve used your funding well to make a positive impact on your company, the more attractive your business will look to lenders and investors in the future.

Editors’ note: This article was originally published in 2019 and updated for 2021.

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4 Key Financial Statements For Your Startup Business Plan

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  • September 12, 2022
  • Fundraising

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If you’re preparing a business plan for your startup, chances are that investors (or a bank) have also asked you to produce financial projections for your business. That’s absolutely normal: any startup business plan should at least include forecasts of the 3 financial statements.

The financial projections need to be presented clearly with charts and tables so potential investors understand where you are going, and how much money you need to get there .

In this article we explain you what are the 4 financial statements you should include in the business plan for your startup. Let’s dive in!

Financial Statement #1: Profit & Loss

The profit and loss (P&L) , also referred to as “income statement”, is a summary of all your revenues and expenses over a given time period .

By subtracting expenses from revenues, it gives a clear picture of whether your business is profitable, or loss-making. With the balance sheet and the cash flow statement, it is one of the 3 consolidated financial statements every startup must produce every fiscal year .

Most small businesses produce a P&L on a yearly basis with the help of their accountant. Yet it is good practice to keep track of all revenues and expenses on a monthly or quarterly basis as part of your budget instead.

When projecting your financials as part of your business plan, you must do so on a monthly basis. Usually, most startups project 3 years hence 36 months. If you have some historical performance (for instance you started your business 2 years ago), project 5 years instead.

use of funds in business plan example

Expert-built financial model templates for tech startups

Financial Statement #2: Cash Flow

Whilst your P&L includes all your business’ revenues and expenses in a given period, the cash flow statement records all cash inflows and outflows over that same period.

Some expenses are not necessarily recorded in your P&L but should be included in your cash flow statement instead. Why is that? There are 2 main reasons:

  • Your P&L shows a picture of all the revenues you generated over a given period as well as the expenses you incurred to generate these revenues . If you sell $100 worth of products in July 2021 and incurred $50 cost to source them from your supplier, your P&L shows $100 revenues minus $50 expenses for that month. But what about if you bought a $15,000 car to deliver these products to your customers? The $15,000 should not be recorded as an expense in your P&L, but a cash outflow instead. Indeed, the car will help you generate revenues, say over the next 5 years, not just in July 2021
  • Some expenses in your P&L are not necessarily cash outflows. Think depreciation and amortization expenses for instance: they are pure artificial expenses and aren’t really “spent”. As such, whilst your P&L might include a $100 depreciation expense, your cash flow remains the same.

use of funds in business plan example

Financial Statement #3: Balance Sheet

Whilst the P&L and cash flow statement are a summary of your financial performance over a given time period, the balance sheet is a picture of your financials at a given time.

The balance sheet lists all your business’ assets and liabilities at a given time (at end of year for instance). As such, it includes things such as:

  • Assets: patents, buildings, equipments, customer receivables, tax credits etc. Assets can be either tangible (e.g. buildings) or intangible (e.g. customer receivables ).
  • Liabilities: debt, suppliers payables, etc.
  • Equity : the paid-in capital invested to date in the company (from you and any other potential investors). Equity also includes the cumulative result of your P&L: the sum of your profits and losses to date

Whilst P&L and cash flow statement are fairly simple to build when preparing your business plan, you might need help for your balance sheet.

use of funds in business plan example

Financial Statement #4: Use of Funds

The use of funds is not a mandatory financial statement your accountant will need to prepare every year. Instead, you shall include it in your startup business plan, along with the 3 key financial statements.

Indeed, the use of funds tells investors where you will spend your money over a given time frame. For instance, if you are raising $500k to open a retail shop, you might need $250k for the first year lease and another $250k for the inventory.

Use of funds should not be an invention from you: instead it is the direct result of your cash flow statement . If you are raising for your first year of business, and your projected cash flow statement result in a $500k loss (including all revenues and expenses), you will need to raise $500k.

For instance, using the example above, if you need $500k over the next 12 months, raise $600k or so instead. Indeed, better be on the safe side in case things do not go as expected!

use of funds in business plan example

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Sources and Uses of Funds

Step-by-Step Guide to Understanding the Sources and Uses of Funds Table (S&U)

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What are Sources and Uses?

The Sources and Uses of Funds is a table summarizing the total amount of funding required to complete an M&A transaction, such as a leveraged buyout (LBO).

Sources and Uses of Funds

How to Calculate Sources and Uses of Funds

Under the specific context of a leveraged buyout ( LBO ), the sources and uses of funds table lists the total cost of acquiring the target in a hypothetical transaction structure.

  • Uses  → The “Uses” side calculates the total amount of capital required to make the acquisition (i.e. the purchase price and transaction fees).
  • Sources  → The “Sources” side details how exactly the deal is going to be funded, including the required amount of debt and equity financing.

One of the main purposes of a LBO model is to evaluate how much an initial equity investment by a sponsor has grown, therefore we must evaluate the necessary initial equity contribution from the sponsor.

The proposed capital structure is among the most important return drivers in a LBO, and the investor usually has the role of “plugging” (i.e. with equity) the remaining gap between the sources and uses for the transaction to proceed and close.

Just like how the assets side must be equal to the liabilities and equity side on the balance sheet, the “sources” side (i.e. the total funding) must be equal to the “uses” side (i.e. the total amount being spent).

Why Does the Sources and Uses Matter in an LBO?

From the perspective of the buyer in a LBO – most often financial sponsors (i.e., private equity firms) – one of the purposes of the sources & uses table is to derive the amount of equity that must be contributed towards the deal.

All else being equal, the less equity contributed by the PE firm, the higher the returns to the fund (and vice versa).

The returns to the investor are a direct function of the amount of equity required. Hence, the required equity contribution is among one of the most important considerations when deciding whether to proceed or pass on an investment opportunity.

Financial sponsors are incentivized to minimize the amount of cash equity required by limiting the purchase price and utilizing as much debt as possible to fund the deal – all while not placing an unmanageable level of risk onto the target company.

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What is the Uses of Funds Side?

To begin, we recommended starting on the “Uses” side before completing the “Sources” side, as intuitively, you’d need to quantify how much something costs before thinking about how you’ll come up with the funds to pay for it in the first place.

The main cash outlay for all LBOs is going to be the purchase price (i.e., the total cost of acquiring the company). Here, the first step is to figure out the entry multiple and the appropriate financial metric.

For the vast majority of deals, EBITDA tends to be the metric that is used to determine the bid (purchase price), and this metric will either be on a last twelve months ( LTM ) or next twelve months (NTM) basis. By multiplying the entry multiple by the relevant financial metric, the purchase price can be calculated.

Besides the purchase price, the uses section also consists of the following two fees categories:

  • Transaction Fees  → Costs associated with M&A advisory and legal expenses – with such fees typically estimated by multiplying the purchase enterprise value by a transaction fee percentage assumption (i.e. 2%) until more data is available to adjust accordingly
  • Financing Fees → Oftentimes called debt issuance costs, these are the payments to the 3rd parties involved in arranging the debt financing (i.e. administrative fees as charged by the lender, lender legal costs)

Transaction fees are expensed immediately upon transaction close whereas financing fees are capitalized on the balance sheet and amortized over the maturity of the debt despite the payments occurring upfront.

The “Cash to B/S” line item refers to the estimated amount of cash required to be on the balance sheet of the company upon the date of transaction close. The minimum cash balance must take into account the cash required by the acquired company to continue operating day-to-day without needing any external financing to fund its working capital requirements.

What is the Sources of Funds Side?

On the other side of the table, we have the sources of capital, which represent where the funding for the transaction comes from.

The amount of debt used will normally be calculated as a multiple of EBITDA , while the amount of equity contributed by the private equity investor will be the remaining amount required to close the gap for both sides to balance.

The total leverage multiple will depend on the target company’s fundamentals such as the industry it operates within, competitive landscape, and historical trends (e.g., cyclicality , seasonality).

When determining how much debt capacity a company has, investor judgment is required to gauge the amount of debt the company could handle – in addition to preliminary discussions with potential lenders, with whom there are typically pre-existing relationships and/or past experiences working together with the investor.

Other nuances such as management rollover are also going to show up in this section. In short, management rollover is when the prior management team uses their equity (i.e., their stake of the pre-LBO company and exit proceeds from the sale) to help fund the transaction.

Management rollover is usually perceived as a positive sign because it shows that management believes in the company’s ability to implement its growth strategy and its future trajectory.

To calculate the rollover amount, the total buyout equity value and the total pro forma ownership % that will be rolled over must be determined.

In absence of sufficient data, the rollover amount can be roughly approximated by multiplying the rollover % assumption by the total equity required.

Sources and Uses of Funds Calculator

We’ll now move to a modeling exercise, which you can access by filling out the form below.

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1. lbo model transaction assumptions.

In the first step, we’ll calculate the purchase price by multiplying the LTM EBITDA by the entry multiple assumption, which in this case comes out to $250mm ($25mm LTM EBITDA × 10.0x Entry Multiple).

  • LTM EBITDA = $25 million
  • Entry Multiple = 10.0x
  • Total Enterprise Value (TEV) = $25 million × 10.0x = $250 million

Here, we’ll use the total enterprise value (TEV) because we’re assuming the transaction is done on a cash-free, debt-free ( CFDF ) basis.

If a deal is structured as CFDF, the purchase price is the enterprise value to the buyer.

From the opposite end of the table, CFDF from the seller’s perspective means the seller gets to retain the excess cash on the balance sheet (excluding the cash required to continue operating), but in return, must pay off any outstanding debt liabilities using the proceeds from the sale.

2. LBO Financing Assumptions

Next, we can calculate the transaction fees, where for illustrative purposes – we’ll assume the transaction fees related to advisory fees paid to investment banks, consultants and lawyers is equal to 2.0% of the total enterprise value.

By multiplying $250mm by the 2.0% transaction fees assumption, the transaction fees come out to approximately $5mm.

  • Transaction Fees % TEV = 2.0%
  • Transaction Fees = 2.0% × $250 million = $5 million

On a similar note, the financing fees can be calculated by adding up the total initial debt raised and multiplying by the 3.5% financing fee assumption.

  • Financing Fees % Total Debt = 2.0%

For modeling on the job, the financing fees are calculated individually for each tranche, but for this exercise, we’re using simplified assumptions and just using the total debt. Therefore the sum of the debt ($175.0m) is multiplied by the 3.5% financing fees assumption for us to get $6.1m for the financing fees.

  • Financing Fees = 3.5% × $175 million = $6.1 million

To wrap up the uses section, the final line item is the “Cash to B/S”, which directly links to the hardcoded input of $5.0m.

  • Cash to B/S = $5 million

3. LBO Sources of Funds Calculation Example

Moving onto the other side, the “sources” will list where the funding for the transaction comes from.

The predominant source of funds will be in the form of debt capital .

Typically, a private equity firm attempts to raise as much senior debt (i.e., from bank lenders) before raising any other types of debt that tend to be costlier.

The relevant assumptions here are the total leverage multiple and senior leverage multiple.

In our example scenario, the total leverage ratio will be 7.0x – meaning, the total debt raised will be assumed to be seven “turns” of EBITDA.

Since the total leverage ratio is 7.0x while the senior leverage is 4.0x, the debt allocatable to subordinated debt is going to be 3.0x.

  • Senior Debt = $25 million × 4.0x = $100 million
  • Sub Debt = $25.0m × 3.0x = $75 million

4. LBO Rollover Equity and Sponsor Equity Calculation

Now that we have the debt portion filled out, we can now calculate the equity contributions.

The two providers are going to be the existing management team ( rollover equity ) and the private equity firm (sponsor equity).

The total required equity contribution – i.e. the “shortfall” in capital – can be calculated by deducting the total debt from the total uses.

  • Total Equity Requirement = $266.1 million – $175 million = $91.1 million

Then, the management rollover can be calculated by multiplying the rollover assumption (pro forma ownership) by the required equity contribution.

  • Management Rollover = 10.0% × $91.1 million = $9.1 million

For the final step, we must calculate the sponsor equity (i.e., the size of the equity check from the PE firm) now that we have the values of the total debt raised and the management rollover.

  • Sponsor Equity Contribution = $266.1 million – $184.1 million = $82 million

Note: Alternatively, we could’ve just multiplied the total required equity ($91.1mm) by the implied ownership in the post-LBO company (90.0%).

5. Source and Uses Table Example

We’ve now completed filling out the sources and uses of funds table and can wrap up by making sure both sides are equal to each other.

Because our total sources cell links directly to the total uses, it’ll be more practical for our formula to sum up all of the line items for each side as opposed to subtracting the bottom cell from each side.

After doing so, we get zero as the output for our check, which confirms that both sides are equal in our model.

Sources and Uses of Funds Table

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  • Basic LBO Modeling Test
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Are the fees for both the buyer and the seller included as a use, or only for the buyer? For example, if both sides use a banker.

Hi, Cary, Technically, you could negotiate a deal with a high enough purchase price for the seller to be able to pay their fees out of the amount specified as the offer value. However, in an LBO situation, it is typical that the advisory and financing fees that the seller …  Read more »

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How To Write the Funding Request for Your Business Plan

What goes into the funding request, parts of the funding request, important points to remember when writing your request, frequently asked questions (faqs).

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A business plan contains many sections, and if you plan to seek funding for your business, you will need to include the funding request section. The good news is that this section of your business plan is only needed if you plan to ask for outside business funding. If you're not seeking financial help, you can leave it out of your business plan. There are a variety of  ways to fund your business  without debt or investors. Below, we'll cover how to write the funding request section of your business plan.

Key Takeaways

  • The funding request section of your business plan is required if you plan to seek funding from a lender or investors.
  • You'll want to include information on the business, your current financial situation, how the money will be used, and more.
  • Tailor each funding request to the specific funding source, and make sure you ask for enough money to keep your business going.

The funding request section provides information on your future financial plans, such as when and how much money you might need. You will also include the possible sources you could consider for securing your funds, such as loans or crowdfunding. Later, you can update this section when you need outside funding again for business growth.

An Outline of the Business

Yes, you've done this already in past sections, but you want to give potential lenders and investors a recap of your business. In some cases, you might simply share the funding request section so you need to have your business details such as what you provide, information about your target market, your structure (i.e. LLC), owners' and members' information (for partnerships and corporations), and any successes you've had to date in your business.

Current Financial Situation

Again, you've provided some financial information in the financial data section , but it doesn't hurt to summarize. If you're submitting just the funding request, you'll need this information to help financial sources understand your money situation.

Provide financial details such as income and cash flow statements, and balance sheets in your funding request section.

Offer your projected financial information as well. If you're asking for a loan for which you'll be offering collateral, include information about the asset. If the business had debt, outline your plan for paying it off. Finally, share how you'll pay the loan or what sort of return on investment (ROI) investors can expect by investing in your business.

How Much Money Do You Need Now and in the Future?

Indicate what type of funding you're asking for such as a loan or investment. Outline what you need now and what you might need in the future as far as five years out. 

How Will the Funds Be Used?

Detail how you'll be using the money, whether it's for inventory, paying a debt, buying equipment, hiring help, and more. If you plan to use the money for several things, highlight each and how much money will go to each.

Most financial sources would rather invest in things that grow a thriving business than things that pay for debt or overhead expenses. 

Current and Future Financial Plans

Current and future financial plans include items such as loan repayment schedules or plans to sell the business. If you're getting a loan, outline your plans for repayment (although most lenders will have their own schedules). If you have plans to sell the business, let the lender know that and how it will affect them. Other issues to consider are relocation (if you move) or a buyout. Finally, let investors know how they can exit the deal, such as cashing out (and how long before they can do that).

You're asking for money, so you need to always be professional and know your business inside and out. Here are some other things to keep in mind:

  • Tailor your funding request to each financial source : Lenders and investors need different information, such as loan repayment versus ROI, so create different reports for each. 
  • Keep your funding sources in mind : Each resource will have different questions and concerns. Do a little research so you can address them in your report.
  • Ask for enough to keep your business going : Don't be stingy, as you don't want your business to fail from a lack of money. At the same time, don't be greedy, asking for more than you need. 

How do you request funding for a nonprofit?

Most nonprofits seek funding in the form of grants. Write a grant proposal that includes information on the project or organization, preliminary budget needs, and more. Be sure to format it with a cover letter, proposal summary, the introduction of the organization, problem statement, objectives, methods, evaluation, future funding needs, and the budget.

What are three methods of funding?

Grants and scholarships, equity financing, and debt financing are the main three methods of funding for small businesses . Grants and scholarships do not need to be repaid and are often best for nonprofit organizations. Equity financing is when you receive money in exchange for ownership and profits. Debt financing is when you borrow money that needs to be repaid.

Want to read more content like this?  Sign up  for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!

Small Business Administration. " Fund Your Business ."

Congressional Research Service. " How To Develop and Write a Grant Proposal ."

Library of Congress Research Guides. " Types of Financing ."

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August 26, 2020

Sources and Uses of Funds Statement

by Michael Langemeier

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This article is one of a series of financial management articles that examine financial statements and financial analysis.  In this article, a sources and uses of funds statement will be illustrated and described.  A sources and uses of funds statement, often referred to as a flow of funds report, provides a mechanism for reporting how a farm’s performance during an accounting period influenced and was influenced by major funding activities.  This report also reconciles information in the income statement, the balance sheet, and the cash flow statement.

Sources of funds include cash farm receipts, capital asset sales, increases in liabilities, outside equity capital infused into the business, and net non-farm cash income.  The increase in total liabilities is derived from the beginning and ending balance sheets.  It is particularly important to track the change in total liabilities from the beginning to the end of the year.  If a farm borrows more money than its reduction in short-term and long-term debt (i.e., principal payments), we have a source of funds.  Conversely, if a farm pays back more debt than it borrows, we have a use of funds.

Uses of funds include farm cash operating expenses, capital asset purchases, decreases in total liabilities, equity capital withdrawals, family living withdrawals, and income and self-employment taxes.  A farm that is expanding will typically have a larger amount of capital purchases than capital sales so capital assets are generally a use of funds rather than a source of funds.  A farm that is expanding would probably also have an increase in total liabilities rather than a decrease in total liabilities.  In contrast, a farm that is downsizing, perhaps in anticipation of future retirement, would typically have relatively higher asset sales compared to asset purchases, and may exhibit a decrease in total liabilities as loans are paid back.

The five primary categories of a sources and uses of funds statement are beginning cash balances, cash flows from operating activities, cash flows from investing activities, cash flows from financing activities, and ending cash balances.  If all cash is accounted for unlocated funds will be zero.  If unlocated funds are not zero (either positive or negative), all cash is not accounted for.  This is often the case if family living withdrawals, and income and self-employment taxes are not included in the statement.

Table 1. Sources and Uses of Funds Statement for White County Farms, 2019.

Table 1. Sources and Uses of Funds Statement for White County Farms, 2019.

Table 1 presents a sources and uses of funds statement for a case farm in west central Indiana for 2019.  The net cash provided by operating activities; which subtracts cash farm expenses, family living withdrawals, and taxes from cash farm receipts; was $319,965.  Net asset purchases for this farm were $184,703 (capital asset purchases minus capital asset sales) so the net cash provided by investing activities was -$184,703.  On most farms, the net cash provided by investing activities will be negative, and thus will need to be covered by cash from operating activities or financing activities, or by drawing down cash balances.  The net cash provided by financing activities was $50,829, which is indicative of a situation where a farm increases total liabilities (loan receipts are larger than loan payments) to help pay for capital asset purchases.  For this case farm, loan receipts were $97,777 and principal payments were $46,948.  The net cash provided by operating and financing activities was larger than the net cash provided by investing activities for this farm resulting in an increase in the ending cash balance.

Unlocated funds are zero in table 1 indicating that all cash is accounted for.  If this balance is not zero, it is important to check the accuracy of the balance sheet, the income statement, and the cash flow statement.  It is particular important to check the accuracy of capital flows in and out of the business and family living withdrawals.

This newsletter article illustrated and described a sources and uses of fund statement.  Other articles in this series discuss the balance sheet, the income statement, the statement of owner’s equity, and benchmarking.

TEAM LINKS:

Michael Langemeier

Michael Langemeier

Part of a series:.

Financial Management Series

Financial Management – Statements & Analysis

Related resources, usda farm income forecast, february 2024 update.

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Top 5 Use of Fund Templates with Samples and Examples

Top 5 Use of Fund Templates with Samples and Examples

Garima Sharma

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Struggling to persuade investors to fund your project? Facing challenges with financial transparency, specifically fund inflows and outflows? Fund allocation is a daunting task for all!

Allocation of funds is a significant aspect that businesses consider, whether they are penetrating a new market, seeking capital infusion, starting a marketing campaign, or planning for the upcoming fiscal year. It's hard to move forward unless you have a clear financial picture. The right use of funds template highlights the complete allocation of wealth in a structured format and presents a compelling story.

Kickstart your project with a PowerPoint presentation with a smart layout that will help you gain clarity in terms of fund highlights, performance data, and investment or mortgage strategies.

Suppose you are a marketer, financial analyst, banker, investor, or entrepreneur who deals in marketing,  crowdfunding campaigns , investment, and financial planning; you need a robust slide deck that converts complex data into understandable information.

In this blog, we will discuss five Use of Fund Templates that can elevate your pitch game and help you achieve your target.

Let's begin!

PowerPoint Use of Fund Templates to Persuade Investors

SlideTeam has come up with content-ready PPT slides that save you time and help you get the best out of every minute in meetings. You can communicate complex data and deliver a memorable visual story with our 100% customizable and editable templates filled with compelling charts, graphs, and infographics.

Let’s look at five curated  Must-Have Use of Fund Templates.

Template 1: Use of Funds Slide Pitch Deck

Showcase your company's history, elevate your brand USP, persuade potential investors, and share crucial project insights through our impactful PPT Deck. This 30-slide presentation allows you to organize data, simplify complex concepts, show intricate details, and emphasize critical aspects.

Our versatile template incorporates charts, graphs, and flowcharts, encompassing everything from revenue models to fundamental statistics, making it suitable for any business domain. You can use it when  penetrating a new market or introducing a new product.

Use of Funds in Company

DOWNLOAD NOW

Template 2: Financial Plan Use of Funds in E-Com  

Get a complete picture of the allocation of funds raised for the business using this PPT template. Understand the  use of investments  in critical areas, including business development, new hiring, product innovation, debt repayment, sales & marketing, and R&D.

It offers a more comprehensive understanding of any financial plan's utilization in the E-commerce garment business. This versatile template allows in-depth discussions and ways to maximize investments and foster product innovation.

Use of funds in e-commerce garment business

CLICK HERE TO DOWNLOAD

We also recommend using our PPT Rules to raise funds for your e-commerce business.

Template 3: Use of Funds for Annual Fund Collection Report  

Use our editable slide deck and share detailed insight into fund acquisition strategies during the pre-seed funding stage, covering the fiscal year (from FY19 to FY20 as an example). You can communicate the complete data about the allocation of funds across various annual activities, such as operations, acquisitions, and maintenance. The presentation is available for immediate download, enabling you to make a lasting impact on your audience.

Use of Funds for FY 19-20

Template 4: Funding Request and Use of Funds Expenses PPT  

Are you a part of a  founder fellowship  program? Want to know the complete allocation of funds requested? Use our dynamic PPT Slide and delve deeper into the subject. The PPT Preset saves your energy and time and is a valuable resource for in-depth discussions. You can use it to navigate the funding requests and the utilization of funds successfully. Download it at your convenience and customize it according to your goal.

Funding Request and Use of Funds

Template 5: Sources and Use of Funds  

SlideTeam offers a flexible and easily downloadable PPT slide deck to communicate accurate financial information. The set of slides offers deep insight into sources of funds and their further usage for a project. It encompasses subjects, including funds, fixed assets, operational capital, sources of funds, and commercial mortgages . If you deal in operations, download the PPT, modify the content, adjust the elements, and create a memorable impact on potential investors, lenders, and other stakeholders.

Sources and Use of Funds

Unlock the Power of Strategic Funding

We cannot ignore the challenges related to investor persuasion, financial transparency, and fund allocation. Effective fund allocation is critical in various business endeavors, such as market entry, fundraising, marketing initiatives, and long-term financial planning. Using a well-structured PowerPoint presentation is a powerful solution to address the issues.

Use those above five thoughtfully designed Use of Funds PowerPoint templates, each tailored to different business scenarios and target audiences. Get simplified financial information, attract investors and lenders, and inform your stakeholders well. Utilize our dynamic slide deck that offers customization and the capability to streamline complex concepts, making your presentations more engaging and informative.

With our Must-Have Use of Funds Templates, you have all the tools to navigate the terrain of business successfully.

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The Sources & Uses of Funds Spreadsheet: What You Need to Know

by Diane Tarshis | Financials

If you’re not a numbers person, I recommend reading or listening to Financial Projections Explained (Even If You’re Not a Numbers Person) and The Difference Between P&L and Cash Flow Projections before reading this article.

  • How much money do you really need?
  • What will you be spending that money on?
  • How, exactly, are you coming up with that number?

Even if you’re bootstrapping, you’re not off the hook.

Answering these questions helps to ensure that you have enough access to cash (also known as working capital or liquidity) to keep your business afloat until you become what I call “reliably profitable.” I say “reliably” because a single month or quarter isn’t enough time to guarantee that you’re on solid enough financial footing to be self-sustaining.

Where to start…

To answer these questions, you first need to build realistic financial projections using the standard spreadsheets I covered in Financial Projections Explained (Even If You’re Not a Numbers Person) . Specifically, you’re going to need the Sources & Uses of Funds.

  • All the cash coming into your startup from loans, investments and grants (and from whom)
  • How you plan to use that cash (by type or category)

The Sources & Uses of Funds will not only provide this information, but just as importantly, show that you’ve done your homework, which is a fantastic way to make sure you’re taken seriously. Gold star for you!

Why this spreadsheet is different from the others.

When you look closely at the 5 main spreadsheets startups use for their financial projections, you’ll see that the Sources & Uses of Funds is different from the all the others in one important aspect:

It’s the only spreadsheet that relies on information from other spreadsheets.

Specifically, you need to complete your Cash Flow Projections and Equipment List first. Then you can begin work on your Sources & Uses of Funds.

So let’s go over what you need to know to build this spreadsheet the right way, so you’ll have all your ducks in a row when you start asking for money.

First off, avoid this common mistake.

An unfortunate but common error many entrepreneurs make is including startup costs * in their profit and loss (P&L) and cash flow projections. Doing this is a problem because it distorts your financial picture.

The P&L relies on your estimated revenues and expenses to show your startup’s profitability, whereas cash flow projections rely on those same estimates to show your startup’s ability to pay its bills. Both are essential tools when it comes to setting your prices as well as budgeting. Including startup costs in these spreadsheets will throw your financial picture out of whack because they’re not part of your daily operations.

For example, money received from investors or other funding sources is not revenue. In fact, funding has nothing to do with measuring sales, which is what revenue is meant to show. And startup costs, such as building your website, buying a delivery van or hiring a consultant to write your business plan, have nothing to do with your daily operating expenses.

* When I refer to startup costs, I mean the one-time expenses you incur before you begin your normal daily operations.

Here’s what the Sources & Uses of Funds tells you:

Done right, a Sources & Uses of Funds will show you how much cash you’re going to need to:

  • Launch your business.
  • Cover your expenses until your startup is generating enough cash to cover its own expenses… or reach the next round of funding.
  • Raise from investors, borrow from lenders or budget for yourself if you’re planning to bootstrap.

What goes in the “Sources” section.

In the Sources section you’re going to list everyone who is providing the startup funds that you need. Regardless of whether you’re planning to find outside investors, secure a loan, use your own money or some combination, this part of the spreadsheet has to show all the sources of funding for your business.

You’ll need to list each one on its own line, including the source’s name along with the amount they are investing or loaning to you.

Founder Contribution: Suzy Q.                         $xxx Founder Contribution: Andre M.                       xxx Investment from Tony Smith:                              xxx Investment from XYZ Ventures:                        xxx Total Sources:                                                           $xxx

When you’re completing this section, make sure not to leave out anything, including money coming from friends, family, co-founders or yourself, if you’re using your own money.

After each source is listed, you’ll total them up to determine the sum of all incoming funds. Then you’re ready to move on!

What goes in the “Uses” section.

The Uses section includes two different categories:

  • Startup costs
  • Working capital

1. Startup costs.

In the first category, you need to consider all of the expenses you’ll incur before you launch your business. This includes things like a website, furniture, equipment, legal fees, consultant fees, grand opening expenses and more.

Each category should be listed on its own line of the spreadsheet. For example, you’ll have one line for furniture, one for equipment, one for consultant fees and so on.

Reminder: If you need to purchase equipment for your startup — things like machinery, display cases, a delivery van, etc. — you’ll need to create a separate Equipment List spreadsheet where the individual items are listed in detail, along with delivery and installation fees, sales tax, etc. Then you put that total in the Uses section.

App Development                                                    $xxx Business Plan                                                                 xxx Equipment                                                                       xxx Legal                                                                                    xxx Grand Opening                                                             xxx Inventory/Supplies                                                    xxx Website                                                                            xxx

Cash Needs for 17 Months of Operations   xxx Cash Reserve for Contigencies                          xxx Total Uses:                                                                  $xxx

Now we’ll look at the next thing you have to account for in the Uses section…

2. Working capital.

This category refers to the amount of cash you’ll need to bridge the gap until your business is generating enough cash to fund itself and become self-sustaining.

This number will appear as its own line item labeled “Cash Needs for ___ Months of Operations.”

Of course, to figure out how many months it will take to become profitable, you’ll have to refer back to your Cash Flow Projections. That’s why you need to prepare them before tackling your Sources & Uses of Funds.

To estimate when your business will be “reliably profitable,” take a look at the bottom two lines of your Cash Flow Projections spreadsheet. They show the cumulative beginning and ending cash on hand each month.

Find the month when the negative numbers become consistently positive. However many months it is from when you start your business, that’s the number you’ll use to fill in the blank of “Cash Needs for ___ Months of Operations.”

Finally, I recommend adding an additional line labeled “ Cash Reserve for Contingencies . ” It’s always smart to have a small cushion to cover any surprises that crop up.

Two important points about the Sources & Uses of Funds:

1. the totals have to match..

In other words, Total Sources needs to equal Total Uses. This isn’t my rule, it’s an accounting rule.

If there’s a significant difference between Total Sources and Total Uses, then there’s something important missing in one of the sections. It’s important for you to find and fix any discrepancies.

It’s especially important to do this before showing your numbers to other people. If your Total Sources and Total Uses don’t match up, it’s a red flag to banks and potential investors that you don’t understand your financials.

If, on the other hand, your two totals are close but not exact, I tweak the Cash Reserves line item slightly — and I do mean slightly — to make the numbers match.

2. Double-check that your financial projections are realistic and credible.

You’ll know you’ve done things right when you’re confident that you can defend your assumptions if an investor or banker dives in and asks how/where/why you chose the numbers you did. Pro Tip: It’s not really about the numbers per se, it’s about the thinking behind the numbers that they’re testing you on.

Helpful reading and resources.

For more information on the financial spreadsheets mentioned in this article, take a look at my DIY Business Plan Kit . It goes into far greater detail on the five main spreadsheets you need for your business plan, and includes Excel templates with some formulas already built in.

Also take a look at The Difference Between Profit & Loss and Cash Flow Projections to get a better understanding of how each of those spreadsheets works. And if all of this numbers talk is new to you, be sure to take a look at Financial Vocabulary for People Who Hate Numbers .

Last but not least, if you’d like help putting together your financial projections — as well as learning how to use them so that you can take charge and feel comfortable changing things as you move forward — consider working with me one on one ( see more details here ).

Want some one-on-one help?   Book a free discovery call.

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Sources and Uses of Funds Statement

A financial statement showing the inflows and outflows of a company's financial positions

Osman Ahmed

Osman started his career as an investment banking analyst at Thomas Weisel Partners where he spent just over two years before moving into a growth equity investing role at  Scale Venture Partners , focused on technology. He's currently a VP at KCK Group, the private equity arm of a middle eastern family office. Osman has a generalist industry focus on lower middle market growth equity and buyout transactions.

Osman holds a Bachelor of Science in Computer Science from the University of Southern California and a Master of Business Administration with concentrations in Finance, Entrepreneurship, and Economics from the University of Chicago Booth School of Business.

Austin Anderson

Austin has been working with Ernst & Young for over four years, starting as a senior consultant before being promoted to a manager. At EY, he focuses on strategy, process and operations improvement, and business transformation consulting services focused on health provider, payer, and public health organizations. Austin specializes in the health industry but supports clients across multiple industries.

Austin has a Bachelor of Science in Engineering and a Masters of Business Administration in Strategy, Management and Organization, both from the University of Michigan.

What Is A Sources And Uses Of Funds Statement?

  • The Flow Of Funds
  • Funds From Operations Or Trading Profits
  • Issuance Of Share Capital
  • Raising Of Loans And Debentures
  • Sale Of Fixed Assets Or Long-Term Investments

Non-Trading Receipts

  • Decrease In Working Capital

A sources and uses of funds statement, otherwise known as a flow of funds statement, gives an updated look into a project, the allocated funds for that project, and how they are being spent. They can be for investing, financing, or even operating activities.

use of funds in business plan example

All of these can be found on any company's financial statements , understatement of cash flows, and are imperative to the success of a business. There are different sources to pay attention to when it comes to a statement of funds, and they are:

  • Notice of changes in the financial position
  • Cash flow statement
  • Statement of funds.

These sources and uses of funds can be accessed at any time but are released annually. They help accountants, and other industry professionals see how much money is allocated at certain times or for specific projects.

It is essential to understand the different ways funds can flow and the statements documented to track the progress of each.

Key Takeaways

The Sources and Uses of Funds Statement provides a comprehensive view of fund allocation and spending. It's essential for understanding investment, financing, and operational activities.

Mastering fund flow isn't just about accounting; it's crucial for business strategy and loan credibility. It reflects financial health and attracts potential investors.

The statement draws data from financial position changes, cash flow, and fund allocation. This gives professionals valuable insights into fund utilization.

Funds stem from operations, share issuance, loans, asset sales, non-trading receipts, and reduced working capital. Balancing these sources is crucial for cash flow optimization.

Effective cash flow management ensures positive cash flow, liquidity, and stability, all vital for business success.

  The Flow of Funds

How a company presents its fund flow statements can indicate the business and whether they are reliable for loans or even a future pool of funds. 

Lending someone money requires a mutual trust that the money will get returned. If a company has a good flow of funds, it can be easier to delve out cash because it is tied up somewhere else. 

There are many sources of funds, some of which are better than others. However, the funds flow between business and customers is essential for the success and longevity of a business in a particular field. 

Here is a flow chart of how funds can flow within a business.

use of funds in business plan example

The different sources of funds can ultimately tell you a lot about the position of the money.

Along with the part of the money, the Top 6 Sources of Funds, non-related to the different sources of statements of funds, are:

  • Funds from operations or trading profits 
  • Issue of Share Capital
  • Raising of loans and debentures
  • Sale of fixed assets of long-term investments
  • Non-trading receipts 
  • Decrease in working capital 

We will dive into each one in its specific light and how they ultimately affect the flow of funds to and from different businesses.

Funds from Operations or Trading Profits

The profit one receives from operations within the business and trading at profits are some of the best ways to source funds. However, sales alone are the primary source of cash flow for businesses.

This is done simultaneously while increasing current assets such as cash or other outstanding bills. Along with support, the funds flow from businesses for their cost of goods sold , and expenses are just as necessary.

As a result, the total effect of business operations relative to their cash flow will be a source of funds if the same inflow from sales is more than the outflow for expenses and cost of goods sold. 

These are basic ideas, as you want to bring in more money than you are spending, hence the topic of profit.

It is imperative to remember that funds from operations do not account for a firm's profit and loss account because many operating and fund items are non-profitable. The reason is that they may have been debited or credited to profit and loss.

There are many examples of such items on the debit side of a profit and loss account. 

  • Amortization of fictitious and intangible assets , such as goodwill, 
  • Preliminary expenses  and discount on issue of shares and debentures written off;  
  • Appropriation of Retained Earnings , such as Transfers to Reserves, etc., 
  • Depreciation and depletion; Loss on sale of fixed assets; Payment of dividend, etc.

The non-fund items are those which may be expenses linked to operational activities. They do not affect the funds of the business. For example, funds do not move out of the company for depreciation charged to a profit and loss account. 

Items deemed as non-operating may result in the outflow of funds but are not related to the trading operations of the business.

An example of items deemed as non-operating is the payment of dividends when you get paid for holding the stock.

Issuance of Share Capital

If a business increases capital shares at any time during the year, it inevitably means that money has been raised. These shares of capital can either be preference or just equity.

Issuing shares is a source of funds because it means an in-flow of funds. So even if it is not fully paid, receiving calls from partly paid shares still represents a source of funds.  

These funds are still documented on the funds' flow statement. It is also important to remember that the sum proceeds from whatever net profit you are making from the shares of capital you were issued still amounts and counts as a source of funds.  

If shares are issued at a premium price, even the collected premium still counts as a source of funds.

The same goes for when these shares are issued at a discount; these shares will not be the actual numerical value of shares, but rather the deducting discount will amount to and is considered a source of an inflow of funds.

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Raising of Loans and Debentures

The issuing of debentures, or the raising of long-term unsecured loans through public or capital investments very similar to bonds , results in being a source of the inflowing of funds for a business.

use of funds in business plan example

Secured loans are backed by collateral, such as your home or car, and get taken away if you avoid paying on time. On the contrary, unsecured loans are not backed by anything except you, your credit reputation, and your creditworthiness .

To understand what a debenture is a little bit more, here is a simple investment cycle of them.

It truly does not matter if these loans are secured or unsecured, as they still result in being a source of funds.  

This source of funds from the actual proceeds of issuing debentures and raising capital includes the amount of the premium or not having the discount rate if there was one at all.

However, loans raised for purposes other than a current asset, such as the intent to purchase a building, will not count as a source of funds because, in that case, the accounts involved are only fixed or non-current. 

This is where selling them can also be considered a source of funds.

Sale of fixed assets or long-term investments

There are many fixed or non- current assets . Many of these are great investments, especially for the long term.

Some of these non-current or fixed assets are:

  • Buildings and architecture 
  • Plants and machinery 
  • Household equipment and furniture. 

When any of these long-term investments are sold, it subsequently generates revenue and, as a result, becomes a source of funds.  

We mustn't forget that even if one fixed asset is exchanged for another, it does not mean there is now a source or inflow of funds because no other acquisitions are currently involved.

For an accountant lodging a journal entry, it would go into the balance sheet as:

  • Debit cash for the amount which you received
  • Debit all of the accumulated depreciation
  • Debit the whole loss on the sale of the asset account
  • Credit the asset for the fixed amount.

These ideas are essential. Every business has to have a team of accountants who can lodge these journal entries appropriately. 

As every business wants to increase its profits, they need to hang onto the appropriate assets to make that possible so that it won't lose money over time. 

Hammering home the idea that these assets do not depreciate is essential. This source of funds is meant to be one for long-term growth, not short-term.

Any receipts which are non-transferable such as a dividend received, a refund on your taxes, or a landlord receiving rent, all increase funds and are treated as a source of funds because this source of income is not included in the funds you received from operations.

Unlike most other ways of trading when your main goal is to sell what you have to make a profit, the concerns of non-trading entities always are accepting receipts and donations.  

These receipts are usually from the general public, corporate entities, and the government carrying out their operations. Some common examples of non-trading concerns are:  

  • Athletic and sports clubs
  • Colleges and Universities

The common theme between these places is that these institutions were established and originated not from making a profit but rather for some religious or charitable purpose.

There are many concerns associated with non-trading institutions, which are essential to note, such as:

  • Non-Profit Motivation : Many non-trading organizations do not seek to earn profit. Instead, their main objectives are to serve their members or society, which can lead to concern over the common.
  • Entity : The concept of entity is a common concern for non-trading entities, as they do not associate with or have any ownership or lack thereof. 
  • Organizational Forms : As mentioned above, clubs, universities, hospitals, and others are all forms of organizations for non-trading entities. 
  • Sources of Income : Non-trading concerns have limited sources of income. Such organizations depend on the donations given by the members and outsiders, such as tuition for a university. All these donations might be inadequate, which can be a concern if they underperform.  
  • Budgeting & Use of Funds:   For organizations on a larger scale, even if they have or don't have non-trading concerns, always prepare an annual budget. Likewise, the use of funds from non-trading entities should be strictly for the benefit of the consumers. As mentioned before, if the sources of funds are inadequate, it might become challenging to suffice the individual needs.

Decrease in Working Capital

Suppose the working capital decreases from period to period, and the current period is less than the previous period. In that case, it means that funds have been released from working capital , which constitutes a source of funds.

When less money is spent to pay your workers, more money is spent on the company. 

In other words, if a company's WCR or Working Capital Ratio falls below one, it has a negative cash flow . Therefore, a WCR below one is not good and means its current assets are less in value than its liabilities.  

The company cannot pay its debts with its current working capital. When something like this happens, a company will have difficulty paying its creditors on time.

As previously mentioned, decreasing the working capital increases cash flow and is a viable source of funds. 

It is wise for businesses to do this, as ideally, they would always want a source of income to tap into in the event you need quick cash for operational expenses.

In summary, there are many uses and sources of funds. When it comes to the statement of cash flows , every company is doing its best to ensure that its cash flows are most liquid and with many revenue streams from them. 

The companies doing the best with the most profit usually use multiple, if not all, six or more sources of funds to increase their own.

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use of funds in business plan example

April 12, 2023

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Use of Funds Slide Best Practices With Pitch Deck Examples

Use of Funds Slides are used to present your company’s financial information in a pitch deck with a way that is easily understandable. If you don’t know where to start, consider our best practices below!

What's Inside?

There's no question that a well-presented funding slide can make or break a pitch. Even if you have the most amazing product or service in the world, if you can't convince your audience that you're worth investing in, you won't get very far.

In this blog post, we'll take a look at some best practices for creating and delivering a successful use of funds slide . We'll also provide some examples to help illustrate these concepts. Let's get started!

What is a pitch deck ?

A pitch deck is simply a presentation that entrepreneurs use to communicate the key ingredients of their startup story to potential investors.

A great pitch deck should be clear, concise, and compelling, while also visual and easy to follow.

The best pitch decks tell a complete story about the problem the startup is solving, the market opportunity , the product or solution, the team, traction to date, and how all of this translates into a large business with significant upside potential.

use of funds slide preparation

Additionally, a good pitch deck will address any areas of concern that investors might have and provide thoughtful responses.

In short, a pitch deck is an essential tool for any startup seeking outside investment.

Types of use of funds slides

The use of funds slide can be a really important part of the pitch deck, and it should explain how you intend to spend your money. For example, if you are using equity financing rounds, then the use of funds slide should detail how you intend to spend that money.

One type of use of funds slide is a pie chart that breaks down the percentage of each category that will be allocated to research and development, sales and marketing, administration, and so on.

Another type of use of funds slide is a bar graph that shows how the money will be distributed over time. This can help investors see when the company expects to start spending the money and how it will be used over time.

use of funds slide template

Financial slides, on the other hand, are more detailed than the use of fund slides. To mention a little, they can be used to help present your company's financials. Some of the most common are the income statement, balance sheet, and cash flow statement.

Each of these slides can provide different insights into your company's financial health and where your funds are being allocated.

For example, the income statement shows how much revenue your company is generating and how much profit it is making, while the balance sheet shows what assets and liabilities your company has. The cash flow statement shows how much cash your company is bringing in and spending.

Best practices for use of funds slides

There are no definitive "best practices" for use of funds slides, as every company is different and will have different needs. However, here are a few general tips to keep in mind when creating your company's funds slide:

1. Make sure your numbers are accurate and up-to-date. Investors will want to see evidence that you are making smart and responsible use of the funds they invest in you.

use od fund deck creation

2. Be clear and concise in your presentation of information. Investors don't want to have to dig through a bunch of numbers to figure out what's going on - they want to be able to understand your financial situation at a glance.

3. Keep it simple. Your funds slide should be clear and concise, so avoid overcrowding it with too much information.

Examples of use of funds slides

Facebook's pitch deck template.

If you're looking to create a pitch deck for your startup, Facebook has a template that you can use. The social media giant released the pitch deck template that its own developers used when pitching Facebook to investors back in 2004.

The deck includes slides on the problem that Facebook is solving, the market opportunity, the product, the team, the business model, and the competition.

While it's not necessary to use Facebook's exact template, it can be a helpful starting point for creating your own pitch presentation .

Uber's pitch presentation

Uber's pitch presentation is one of the most pitches in their arsenal. It's a way to convince potential investors that Uber is a good bet and to get them excited about the company's prospects.

The pitch deck is also a valuable tool for Uber when it comes to fundraising. By giving potential investors a clear picture of the company's plans and prospects, they're more likely to invest.

Airbnb’s investor pitch deck

A pitch deck is a presentation that entrepreneurs use to pitch their business idea to potential investors. The pitch deck is a key component of the fundraising process, and it can make or break a startup’s chances of success.

Airbnb ’s pitch deck is a great example of how to craft an effective pitch. The deck is concise and to the point, and it tells a compelling story about the company’s vision and mission.

It also includes concrete data points that illustrate Airbnb’s impressive growth. Perhaps most importantly, the deck conveys a strong sense of confidence, which is critical when pitching to potential investors.

startup pitch presentations

Overall, Airbnb ’s pitch deck is a great example of how to effectively communicate your startup’s story.

How to make use of funds slide?

There's no one-size-fits-all answer to this question, as the best way to make a "use of funds" slide will vary depending on your company and its specific funding situation. However, here are a few tips to help you get started:

1. Start by outlining your company's key milestones and objectives, and then show how each milestone was funded (e.g., through investment, grants, etc.).

business pitch deck

2. Use graphs and visuals to illustrate how your company is using its funds effectively. For example, if you've received a grant for research and development purposes, you could use a graph to track how many new products have been developed with that grant money.

3. Keep it simple: Your audience should be able to understand your slide without having to read any accompanying text. Use easy-to-understand visual representations of your data, and make sure all information is accurately represented.

use of fund slide template

4. Be clear and concise: Your slide should communicate exactly what it means in a clear and concise way. Avoid using jargon or complex terms that might confuse your audience.

Tips for building a good pitch deck

A pitch deck is a presentation that startups use to raise funding from investors. A well-crafted pitch deck should be able to articulate your company's vision, business model, and competitive advantages.

It should also provide an overview of your financial projections and use of funds. While there is no one-size-fits-all formula for a winning pitch deck, there are a few key components that every good pitch deck should have.

business templates

First, your pitch deck should have a clear and compelling story. Investors will want to know what problem you're solving and why your solution is unique. Be sure to articulate your value proposition clearly and concisely.

Second, your pitch deck should include a use of funds slide. This slide will show investors how you plan on using the funding you're requesting. Be sure to be realistic and clear about your plans for the use of funds.

Third, your pitch deck should be visually pleasing and easy to follow. Remember that investors will be seeing a lot of pitch decks, so you want yours to stand out. Use high-quality visuals and graphics to help tell your story in an engaging way.

raise fund template

Fourth, your pitch deck should be well-rehearsed. You'll only have a limited amount of time to make your case.

Do's and don'ts of pitch deck delivery

When delivering a pitch deck, there are a few things to keep in mind in order to make the most impact.

First, use the use of funds slide to help tell your story and communicate your strategy.

Second, focus on the key points you want to get across and don't try to cram too much information into the presentation.

presentation template

And finally, practice, practice, practice! There's nothing worse than getting stage fright in front of potential investors.

Also, there are some things to avoid doing if you want to make a good impression. First, don't use too much jargon or technical terms that your audience won't understand.

Second, don't try to cram too much information into your presentation - focus on the key points you want to get across.

Third, don't just read from your slides - engage with your audience and make eye contact.

use of funds slide example

And finally, don't forget to practice your presentation before you give it! If you follow these tips, you'll be sure to give a pitch deck presentation that impresses you.

use of funds in business plan example

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Write the Funding Request Section of Your Business Plan

Startup Fundraising Checklist

Free Startup Fundraising Checklist

Aayushi Mistry

  • December 12, 2023

Write the Funding Request Section of Your Business Plan

While writing a business plan to seek funding, you must be clear about what needs to be written under the section where you would request funding. This is an important and essential section of your business plan.

What Is the Funding Request?

A funding request section of your business plan allows you to ask for the required fund. While writing the request, you always have to mention the timeline in which you will utilize the funds. Usually, this timeline is up to the next 5 years from the request.

The funding request may differ on the age of your company. If your company is only a start-up, it will have to provide more details than any older company. Generally, any business up to its 7th year is called a startup company. Although this criterion may differ with respect to location and industry.

Step-by-Step Guide to Writing the Funding Request of Your Business Plan

Before you start writing your requests, be clear about your requirements. And, in the same line, be very clear explaining it. Your readers want you to get to the point. So, they can make accurate decisions just in time. Moreover, it will also save you a lot of time and effort.

Once the facts and figures are drawn (accurately), you need to draft them properly into your business plan. And you have to be very careful and precise while doing it.

So ideally, you need to figure out your requirements. And then put it into the context of the business plan.

So, How to derive your funding requirements?

Deriving funding requirements get a little overwhelming. But if you take it one step at a time, it starts getting easier.

First, determine what you need money for

It could be for hiring new staff, getting new equipment, or starting your business at a new location . Just be very clear with the goals. Then list down the requirements and the required fund for it. In the end, sum it up. If you want funds for recovering your debts, explain all your debts in detail.

Now, It Is Time to Know How Much Amount Can You Get on Your Own.

  • Calculate the financial resources: Look out for your saved capital in cash as well as in personal assets. Other than that, see if you can gather the funds from friends and family.
  • Grants and subsidies: Check if your company is eligible for any government grants and subsidies. If yes, apply for it and add the amount. Calculate and find the difference between the required amount and the amount you can already put together. And that will be the amount you will be needing from the third party, investors, or from the bank. Once you have the right fund requirement at hand, list out the investors, moneylenders, and loans who can provide you with the sum.

Now, Let’s Start Writing Your Funding Request

1. Provide Business Information

Yes, you still have to give this brief even though you have already explained it in detail. No, it does not get redundant-It does not have to be. In fact, you can take it up as an opportunity to give a little recap to your potential prospects and moneylenders.

Moreover, sometimes, you might have to only send the funding request section and not the entire business plan. In such cases, such information comes handy.

So, here’s what you will have to explain in the funding request section of your business plan-

  • Target Market
  • Your business structure like LTD, LLC, or more
  • Brief about your product/service
  • Partners involved
  • Business heir, if there exists.

2. Mention the Current Financial Situation

You might have provided some financial information in the financial section. But, you have to add some figures here anyway. Not only will make it contextual, but even easier to have a clear picture in one place.

Here are some financial details that you will have to include in this section:

  • Quarterly as well as yearly cash inflow and outflow
  • Balance sheets
  • P&L statement
  • Expected financial condition in the upcoming quarter and year
  • Include the list of assets and their ownership details if you are asking loan from the bank
  • If your business is in debt, explain the situation in the detail and a brief plan for paying it.
  • Mention how much return on investment can they expect
  • In the end, mention how will you pay off the loan or transfer the ownership of the business

3. Announce How Much Funds Do You Need?

When you explain the situation in brief and have all the facts and figures put aside, narrow it down to your requirements. Mention how much money you need.

4. Discuss Briefly How Will You Use the Money?

Here, you have to narrow down what you need the money for and how you are going to use it. Just list down the details and put the figure for it- so much like how you do your billing. If they are taking the money for multiple things, highlight every detail.

5. Dive Deep into Current and Future Financial Planning

You must have explained a little about the inflow and outflow in the financial section. But over here, you have to get into the details like-

  • If you are getting a loan, outline your timelines for payments.
  • If you are looking forward to selling, mention how it will affect the investors.
  • And then, finally, mention the exit strategy . Your exit strategy includes how you will transfer the business ownership at the end.
  • You only have to add the funding request if only you want the funding from outside. If you don’t want to raise your funds from a third party, then you don’t have to include them in your business plan.
  • Your investors would like to invest in your business if only it is thriving or promising. They are less likely to lend money if you are in debt.
  • You see, you are asking for money. So don’t take this section casually. Know your business inside out and only involve people who know everything about your business.
  • Be as specific about your requirements and the funding that you require.
  • If you are planning to send it to different investors, tailor your funding request according to the reader.
  • All your sources have different mindsets and different funding criteria. Be very specific about it. Do detailed research before starting to write your funding request.
  • Don’t hesitate while asking for the funds. Be open and ask just as much as your business really requires. But at the same time, don’t be greedy.

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Home > Business Plan > Funding Requirements in a Business Plan

funding requirements

Funding Requirements in a Business Plan

… our funding requirements are …

The summary given in the funding requirement section should be consistent with the rest of the business plan. The amount needed, and when it is needed should follow from the detailed financial projections, and the purpose of the funding, sales and marketing, hire of employees, to achieve a milestone etc. should again link in with the rest of the plan,

Funding Requirements Presentation

This is part of the financial projections and Contents of a Business Plan Guide , a series of posts on what each section of a simple business plan should include. The next post in this series is the final section, and deals with the planned exit for investors.

About the Author

Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.

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Trump’s Harsh Punishment Was Made Possible by This New York Law

The little-known measure meant hundreds of millions in penalties in the civil fraud case brought by Attorney General Letitia James.

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Letitia James sits in court behind Donald Trump, who is blurred and out of focus.

By Ben Protess and Jonah E. Bromwich

The $355 million penalty that a New York judge ordered Donald J. Trump to pay in his civil fraud trial might seem steep in a case with no victim calling for redress and no star witness pointing the finger at Mr. Trump. But a little-known 70-year-old state law made the punishment possible.

The law, often referred to by its shorthand, 63(12), which stems from its place in New York’s rule book, is a regulatory bazooka for the state’s attorney general, Letitia James. Her office has used it to aim at a wide range of corporate giants: the oil company Exxon Mobil, the tobacco brand Juul and the pharma executive Martin Shkreli.

On Friday, the law enabled Ms. James to win an enormous victory against Mr. Trump. Along with the financial penalty , the judge barred Mr. Trump from running a business in New York for three years. His adult sons were barred for two years.

The judge also ordered a monitor, Barbara Jones, to assume more power over Mr. Trump’s company, and asked her to appoint an independent executive to report to her from within the company.

A lawyer for Mr. Trump, Christopher M. Kise, reacted with fury, saying “the sobering future consequences of this tyrannical abuse of power do not just impact President Trump.”

“When a court willingly allows a reckless government official to meddle in the lawful, private and profitable affairs of any citizen based on political bias, America’s economic prosperity and way of life are at extreme risk of extinction,” he said.

In the Trump case, Ms. James accused the former president of inflating his net worth to obtain favorable loans and other financial benefits. Mr. Trump, she argued, defrauded his lenders and in doing so, undermined the integrity of New York’s business world.

Mr. Trump’s conduct “distorts the market,” Kevin Wallace, a lawyer for Ms. James’s office, said during closing arguments in the civil fraud trial.

“It prices out honest borrowers and can lead to more catastrophic results,” Mr. Wallace said, adding, “That’s why it’s important for the court to take the steps to protect the marketplace to prevent this from happening again.”

Yet the victims — the bankers who lent to Mr. Trump — testified that they were thrilled to have him as a client. And while a parade of witnesses echoed Ms. James’s claim that the former president’s annual financial statements were works of fiction, none offered evidence showing that Mr. Trump explicitly intended to fool the banks.

That might seem unusual, but under 63(12), such evidence was not necessary to find fraud.

The law did not require the attorney general to show that Mr. Trump had intended to defraud anyone or that his actions resulted in financial loss.

“This law packs a wallop,” said Steven M. Cohen, a former federal prosecutor and top official in the attorney general’s office, noting that it did not require the attorney general to show that anyone had been harmed.

With that low bar, Justice Arthur F. Engoron, the judge presiding over the case, sided with Ms. James on her core claim before the trial began, finding that Mr. Trump had engaged in a pattern of fraud by exaggerating the value of his assets in statements filed to his lenders.

Ms. James’s burden of proof at the trial was higher: To persuade the judge that Mr. Trump had violated other state laws, she had to convince him that the former president acted with intent. And some of the evidence helped her cause: Two of Mr. Trump’s former employees testified that he had final sign-off on the financial statements, and Mr. Trump admitted on the witness stand that he had a role in drafting them.

Still, her ability to extract further punishments based on those other violations is also a product of 63(12), which grants the attorney general the right to pursue those who engage in “repeated fraudulent or illegal acts.”

In other fraud cases, authorities must persuade a judge or jury that someone was in fact defrauded. But 63(12) required Ms. James only to show that conduct was deceptive or created “an atmosphere conducive to fraud.” Past cases suggest that the word “fraud” itself is effectively a synonym for dishonest conduct, the attorney general argued in her lawsuit.

Once the attorney general has convinced a judge or jury that a defendant has acted deceptively, the punishment can be severe. The law allows Ms. James to seek the forfeit of money obtained through fraud.

Of the roughly $355 million that Mr. Trump was ordered to pay, $168 million represents the sum that Mr. Trump saved on loans by inflating his worth, she argued. In other words, the extra interest the lenders missed.

The penalty was in the judge’s hands — there was no jury — and 63(12) gave him wide discretion.

The law also empowered Justice Engoron to set new restrictions on Mr. Trump and his family business, all of which Mr. Trump is expected to appeal.

The judge also ordered a monitor to assume more power over Mr. Trump’s company, who will appoint an independent executive who will report to the monitor from within the company.

Even before she filed her lawsuit against the Trumps in 2022, Ms. James used 63(12) as a cudgel to aid her investigation.

The law grants the attorney general’s office something akin to prosecutorial investigative power. In most civil cases, a person or entity planning to sue cannot collect documents or conduct interviews until after the lawsuit is filed. But 63(12) allows the attorney general to do a substantive investigation before deciding whether to sue, settle or abandon a case. In the case against Mr. Trump, the investigation proceeded for nearly three years before a lawsuit was filed.

The case is not Mr. Trump’s first brush with 63(12). Ms. James’s predecessors used it in actions against Trump University, his for-profit education venture, which paid millions of dollars to resolve the case.

The law became so important to Ms. James’s civil fraud case that it caught the attention of Mr. Trump, who lamented the sweeping authority it afforded the attorney general and falsely claimed that her office rarely used it.

He wrote on social media last year that 63(12) was “VERY UNFAIR.”

William K. Rashbaum contributed reporting.

Ben Protess is an investigative reporter at The Times, writing about public corruption. He has been covering the various criminal investigations into former President Trump and his allies. More about Ben Protess

Jonah E. Bromwich covers criminal justice in New York, with a focus on the Manhattan district attorney's office, state criminal courts in Manhattan and New York City's jails. More about Jonah E. Bromwich

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A man speaks outside court

How will Donald Trump pay the $438m he owes in penalties from civil trials?

Two giant penalties handed down in a matter of weeks will cost him millions – and that’s only part of what he could owe

  • Trump ordered to pay over $350m in New York fraud case

In a matter of weeks, Donald Trump was hit with two giant penalties from two civil trials in New York – $83m for defamation against the writer E Jean Carroll and $354.9m plus pre-judgment interest for inflating the value of his assets on government financial statements.

The verdicts combined will cost him some $438m, and that’s only part of what Trump could owe across numerous lawsuits. The payments will probably create a sizable dent in his wallet. Bloomberg’s billionaires’ list estimated that Trump’s net worth in 2021 was about $2.3bn, meaning these two rulings alone could take out almost a fifth of Trump’s net worth.

Trump’s finances have been notoriously opaque, not least because the Trump Organization is a private business, meaning it does not have to file public financial reports. But here’s what we know about what Trump has to pay and how it will affect his finances.

It all depends on the appeals

Trump is likely to appeal both cases, the outcomes of which could affect how much he ends up owing. It is unclear how long the appeals will take. For reference, an appeals court has yet to rule on a May 2023 ruling for a separate Carroll case that found Trump guilty of sexual abuse and defamation. Trump was ordered to pay $5m in damages in that case.

Also, the appeals court is technically considering two appeals coming out of Trump’s fraud trial. The first appeal came after a September pre-trial ruling found Trump guilty of fraud, ordering the removal of his business licenses. The second appeal is about the penalty the New York judge Arthur Engoron ordered Trump to pay after the months-long trial. It is unclear whether the appeals court will decide on the two appeals together or separately, but it will probably be at least a few months before any decision is announced.

Bankruptcy for Trump is unlikely

While $438m is no small sum, Trump is wealthy. Trump ally Rudy Giuliani declared bankruptcy after a jury ordered him to pay $148m to two Georgia election workers; the former New York mayor has declared he owes between $100m and $500m and has assets of between $1m and $10m.

To declare bankruptcy, Trump would have to prove that the verdict outweighs his assets, something that is highly unlikely.

During a deposition with prosecutors for the fraud trial in April 2023, Trump said that he had more than $400m in cash. However, last year, Forbes reported that Trump had since invested the bulk of his cash in bonds and treasuries, with a small portion kept in stocks and mutual funds. After his guilty verdicts, Trump will probably have to sell a good chunk of those investments.

A big question is whether Trump will have to touch anything in his real estate portfolio. Trump has gotten a cash boost from selling his properties before: he sold his golf club in the Bronx last year, and in 2022, he completed the sale of the Old Post Office building in Washington DC, which was converted into a hotel. Court documents showed that the sale of the Old Post Office netted $131.4m before taxes, according to the New York Times .

It will be a tough decision for a man who, just several years ago, claimed he was worth $10bn. This pride in his wealth has recently been used against him. In closing arguments in Carroll’s January trial, her lawyers told the jury that they should punish Trump with higher damages precisely because he claims he is so wealthy.

“A billionaire like Donald Trump could pay a million dollars a day for 10 years and still have money left in the bank,” Carroll attorney’s Roberta Kaplan told the jury on 26 January. “It will take an unusually high punitive damages award to have any hope of stopping Donald Trump.”

Trump will still have to pay the court, even as appeals go through

Even though Trump is waiting on multiple appeals decisions, he will have to give the court the money to hold on to. If Trump wins any of his appeals, he can get his money back.

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Trump has a few options in paying the court. He could pay up everything that he owes now in cash. Or he could try to get an appeal bond, meaning he wouldn’t have to pay all the cash up front in exchange for a premium and putting up collateral.

In his May 2023 Carroll case, Trump set aside the $5m he owed in cash, saving him about $55,500 in what would have been bond premiums. Though Trump may prefer to pay out the verdicts in cash, it is unclear whether he has enough on hand to avoid a bond this time.

Trump is rich with campaign money, but spending it on personal legal expenses will be complicated

Trump has been zealously fundraising off his legal troubles, probably because he has sizable legal fees for his two civil trials and four criminal trials.

What Trump can pay for using his campaign money is unclear. A federal law bans candidates from using campaign funds for personal use, making it unlikely that Trump can use campaign funds to help pay off some of the Carroll award and fraud penalty.

But Trump has not shied away from using campaign funds for some of his trials. The Associated Press reported in October that Trump’s Save America political action committee (Pac) had paid $37m in legal fees, more than half of the Pac’s total spending.

And the money keeps flowing in. Trump was the Republican candidate who received the most donations last fall, raising $45.5m in the third quarter. Ron DeSantis, who dropped out of the race in January, raised the second most, taking in about $30m.

  • Donald Trump
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Think you know what the top scam of 2023 was? Take a guess

Facebook

Every day people report to the FTC the scams they spot. Every year, the FTC shares the information we collect in a data book which tells a story about the top scams people tell us about – so we can all spot and avoid them.

The Data Book tells us that people lost $10 billion to scams in 2023. That’s $1 billion more than 2022 and the highest ever in reported losses to the FTC – even though the number of reports (2.6 million) was about the same as last year. One in four people reported losing money to scams, with a median loss of $500 per person. And email was the #1 contact method for scammers this year, especially when scammers pretended to be a business or government agency to steal money.

Here are other takeaways for 2023:

  • Imposter scams. Imposter scams remained the top fraud category, with reported losses of $2.7 billion. These scams include people pretending to be your bank’s fraud department, the government, a relative in distress, a well-known business, or a technical support expert.
  • Investment scams . While investment-related scams were the fourth most-reported fraud category, losses in this category grew. People reported median losses of $7.7K – up from $5K in 2022.
  • Social media scams . Scams starting on social media accounted for the highest total losses at $1.4 billion – an increase of 250 million from 2022. But scams that started by a phone call caused the highest per-person loss ($1,480 average loss).
  • Payment methods . How did scammers prefer that people pay? With bank transfers and payments, which accounted for the highest losses ($1.86 billion). Cryptocurrency is a close second ($1.41 billion reported in losses).
  • Losses by age . Of people who reported their age, younger adults (20-29) reported losing money more often than older adults (70+). However, when older adults lost money, they lost the most.

Check out the graphic for the top scams of 2023. Read the 2023 Data Book for more details and to learn what happened in your state.

A scammy snapshot of 2023

Want to protect yourself, your loved ones, and your communities from scams? Go to ReportFraud.ftc.gov to report fraud. Reports like yours help law enforcement take action with education and enforcement. By reporting what you see and experience, you can help protect your community.

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The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Your thoughts, ideas, and concerns are welcome, and we encourage comments. But keep in mind, this is a moderated blog. We review all comments before they are posted, and we won’t post comments that don’t comply with our commenting policy. We expect commenters to treat each other and the blog writers with respect.

  • We won’t post off-topic comments, repeated identical comments, or comments that include sales pitches or promotions.
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We don't edit comments to remove objectionable content, so please ensure that your comment contains none of the above. The comments posted on this blog become part of the public domain. To protect your privacy and the privacy of other people, please do not include personal information. Opinions in comments that appear in this blog belong to the individuals who expressed them. They do not belong to or represent views of the Federal Trade Commission.

Thank you for sharing information that I was not aware of. When people take pleasure in being deceitful! You can no longer trust in laws (especially) or your own family. The more J know the more I am aware of protecting myself and helping others as well!!

I think Congress should pass a bill to penalize the scammers.

In reply to I think Congress should pass… by Hi Nguyen

Thoroughly agree with Nguyen- scammers should be punished/penalized for their crimes. If Congress is required to do so, then Congress should pass the necessary laws to make this happen. Peter

In reply to Thoroughly agree with Nguyen… by Peter

You’re right

I think there are laws but the problem is finding out who and where they are.

In reply to I think there are laws but… by Wren

If they would hold some of the social media platfroms accountable for thier lack of care about any of these issues it would help a lot. Hackers are allowed to use accounts to scam people freely.

Yes definitely they should put them in jail longer than other crimes because it affects you mentally and socially more than a in person crime . This is because you do not know in reality who did the scam. The scammers are working with the person in the scam to rob you. Is gang stalking.

Can’t penalize foreign nationals who reside in foreign countries unfortunately

what a great idea. Robocalling already is illegal but doesnt seem to stop them. MOST coming from Jamacia. Only reason I know that is b.c I did the no no of calling back and it was on my phone bill

Thank you for the information!

I’m surprised that text messages wasn’t listed as a means of fraud or attempted fraud. I get phishing texts the most, followed by phone calls. Lately, I’ve received a few emails with a PDF attachment that is an alleged invoice. I don’t open it. It’s very interesting to watch the scammers attempts to get information or money from me. I’m already a victim of identity theft due to some major data breaches in 2021 to current, so I’m especially careful.

In reply to I’m surprised that text… by MN

Absolutely agree with MN. The phone calls start at 8:30 AM with so-called Medicare plans, or now it's Credit help! 99% of the time I don't answer. It doesn't stop there text comes in with "Hello how are you?" From some unknown number. I print them out in the event that someday I can help catch these creeps.

In reply to Absolutely agree with MN… by Bette Burton James

Bette if you receive the calls on your mobile phone you can block them. If you have an iphone, after the call ends, go to RECENTS, click on the i (information) button, scroll down to the end of the info and click on Block this Caller Forewarning though, they just have another number they can use :-\ Any number you don't recognize, don't answer . . . if it's legit, there should be a message, no message it's not legit. Unfortunately this doesn't stop the robocalls - I've blocked over 1,000 on my iphone in the last year. Good luck!

I've been gettng over 50 "lewd and suggestive" emails every day. I have blocked these and as of this morning there were over 199. Can this list be sent directly? They are insulting, and I would rather forward this to you, if possible.

Enid Hurwitz

In reply to I've been gettng over 50 … by Enid Hurwitz

call the opt out # for robocalls.... google it, it's everywhere... there must be an opt out for spam emails also. ask FTC and FCC and any other agency to report. This may stop it completely...if you're serious. sounds awful. good luck!

Thank you. Very important info!

So, My comment is simple---why isn't there more done to stop this? You have the most sophisticated people people working within the US---there should be a cure for this--shame on America for not having the answer!!!

In reply to So, My comment is simple--… by Deborah K Grimm

if this govt wold only pay folks like Snowden more than they've already made, have him and those like him work for the gov, we'd be In much better shape.

I have brighten a few items on line and got scared. It is hard to tell the difference between a legit company and a phoney one.

My 90 year old trusting and naive Mom has been sending 50 + small checks a month to various 'non-profits' associated with USA Cash Draw and other socalled million dollar sweepstakes. The operation is associated with many unfamiliar 'non-profits', giving her the idea that she is helping folks while assuring she will win at least one of the 20,000 prizes. She does not read the fine print, which has a deadline for a specific draw. However, she is already in the habit of sending 'gifts'. Examples are Citizens behind the badge, advancing American freedom, Fund for integrative Cancer treatment and some familiar ones like Am Against Drug abuse.

A second issue is all the political solicitations (she gets six to 12 inch stacks of mail per day. Some scare tactics of Lawyers requesting money - "they have put her on an important congressional committee" that leads her to believe without her money the political job wont get done. I think This is abusive of her and misuse/disrespectful of free speech. Nevertheless, being a generious person and wanting to help, all the solicitation become a burden and upsetting to this senior. Help!

Thank you Patricia Sargent

thanks for the great work you do....I am seeing lots of iCloud scammers trying to get me to reply to emails saying I have won a prize from big name companies like CVS, Lowes, etc .,,, I delete but would like to start reporting these....I am trying but can't figure out an easy way to report these scammers.

In reply to thanks for the great work… by Bess H Parks

Most big companies have email addresses you can forward scam emails to. You can open the companies' legit webpage & search for scam addresses or customer service. Always good to report to FTC as well.

I would add aggressive sales practices from car dealers to the list, the CARS act does not go far enough to protect consumers.

Publishers clearing house scammers keep calling my home. I cuss them out,hang up on them,etc. and it doesn't stop them from calling.

Thought ID theft has highest losses. ?

Why don't we have a govenment service to locate, arrest and shut them down.

Thank you for this information. We seniors are particularly vulnerable to scammers, and this helps us a lot.

I just contacted the FTC because I got a scam e-mail telling me my Social Security Number was used for Drug Trafficking in Texas and New Mexico! I don't even live anywhere these states! FYI... NEVER click on or open these scam e-mails!

I hope law enforcement is treating this like the huge crime wave it is. It is more than an inconvenience or annoyance. I hear stories of people loosing their life savings.

In reply to I hope law enforcement is… by Nancy Sheran

I agree, it should be considered a form of terrorism tbh. It's attacking US citizens and instilling fear and threatening, isn't that supposed to be terrorism? Whoever is the kingpin of these things should be sent to Guantanamo. It's costing tax payer dollars, counted a ton of the victims are on public assistance. So if our legislation doesn't think this is an attack on us from foreign soil and domestic. They are not thinking or looking at this bigger picture. Our economy is suffering because of scammers on this global scale and something definitely needs to be done. Educate citizens, if you're on public assistance maybe there should be restrictions on the monetary usage? Someone needs to come up with a logical bill for us to vote on. This is getting extreme especially with the ones SWATTING grandma. THAT IS USING OUR OWN DEFENSES TO INSTILL TERROR ON CITIZENS! So yes, I agree with you.

I report most of the email scams, but it takes time. It would be much easier if your program would allow us to forward these without going through the reporting portal. It is a constant battle. I have a call screen on my phone so never answer something I don't recognize, but I have seen texts that I have to block as I know they are scams. There really needs to be a crack down task force working on this. Lots of them are from out of the country.

Emails for payments to Geek Squad, Renewal charges for anti-virus programs like McAfee & Norton, I've dumped & blocked hundreds of them.

It is basically impossible to block the spam emails. Yes, they can be reported to the FTC but only individually, and the form is time consuming. EVERY spam email will have a different phony “From” email, even if there are multiple ones that appear to be from the same sender with same subject matter. There is absolutely no way to stop them. All advice says to just delete them - don’t open or reply. I was getting over 1000 spam emails daily, but interestingly that dropped to about 100-150 daily when I got a new phone. I check and group delete several times a day. Text messages (phone numbers) can at least be blocked. I also refuse cookies or modify them to “strictly necessary”; turning off all marketing and promotional settings. I agree that more aggressive measures are needed.

I have been getting emails from different vendors like Norton security thanking me for the purchase of their service on the day and time of the transaction mostly everyday with different names on them with a phone number for me to call them if I have any questions of the transaction. I just delete them and I have not reported them yet but I will now. Another thing that I have experienced is mostly all the people who walk in front of my door to try to sell some product or service without any proof of the company they represent are fraud and try to get my name and phone number for them to call me later but I do not give it to them. I do not trust no one at all. I get phone calls wanting to know if I have any Master Card and ask me to give them my name and date of birth to make sure it is me and I just hang up on them. I hope this helps somebody and make sure to put a Fraud Alert on your credit report with any of the 3 Credit Bureaus Like Experian.

Consumer education has no chance against fear and greed so ignorance and naivete will continue. Perhaps if the telco's had strong protection against SIM swaps and banks provided more than the weakest forms of 2FA we might have a fighting chance before the data brokers sell our PII to anyone with a credit card.

Please include Scam GAMES claiming PayPal or Cash App payouts. I've followed the game rules and watched HUNDREDS of ads, and as soon as I reached enough to get paid, the site stalls never to reopen, or they want you to do tasks, like spin the wheel 100 times and the error page pops up saying come back tomorrow day after day... granted all that is lost is time, but time is money!

Someone called me today at 5:28 PM, on February 14th, from: caller ID; YELLOWST, 1-307-227-9080, and ask if this was Stephen? They said "Stephen, is this Stephen", I replied "yes this is Stephen". They said then "have a good rest of your day" and abruptly hung up. I searched the number on the internet to try to find out who it was, could not find anything out without paying a fee. So I called them back within about three minutes, it rang a few times then went to a busy signal, I tried twice later that same evening, and got the same answer. I am wondering what kind of scam this is.

How can I know this site isn't a scam?

Australia set to join global clean energy subsidy race with new green fund, AFR reports

A solar array, a linked collection of solar panels, can be seen in front of a residential apartment block in the Sydney suburb of Chatswood in Australia

Reporting by Renju Jose and Lewis Jackson in Sydney; Editing by Mrigank Dhaniwala

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use of funds in business plan example

Thomson Reuters

Reports on breaking news in Australia and New Zealand covering the biggest stories across politics, companies and commodities. Previously wrote about equities at Morningstar.

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BASF plans more German cuts even as group profit set to rebound

Germany's BASF will slash another 1 billion euros ($1.1 billion) in annual costs at its Ludwigshafen headquarters, citing weak demand and high energy costs in its home market, highlighting the country's economic troubles.

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These borrowers are likely to be eligible for Biden's new student loan forgiveness plan

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  • The Biden administration has been working on a new student loan aid package that could come as soon as this year.

While Biden first attempted to cancel student debt through an executive order, he has now turned to the rulemaking process.

  • Here's who may qualify.

Since the Biden administration's first student loan forgiveness plan was rejected at the Supreme Court , it has been working on creating a new, legally viable relief package.

That debt cancellation could come as soon as this year . The alternative plan, which has become known as  Biden's "Plan B ," could forgive the student debt for as many as 10 million people, according to  one estimate .

The U.S. Department of Education and the negotiators tasked with determining who will be eligible for the president's revised aid have identified five groups of borrowers.

1. Those who owe more than they borrowed

Borrowers with outstanding federal student loan balances that exceed what they originally borrowed may be among those who qualify for the cancellation.

A person's student debt can balloon for a number of reasons, said Nadine Chabrier , a senior policy and litigation counsel at the Center for Responsible Lending.

"Unfortunately, it is very common," Chabrier said.

More from Personal Finance: The best money advice I heard this year as a CNBC reporter Op-ed: Money dates are great — but not on Valentine's Day Black Americans face 'disproportionately steep hurdles' to homeownership

Student loan servicers, the companies the Education Department contract with to service its debt, have a record of steering consumers into forbearances and deferments, she said. These options for  struggling borrowers  can keep loans on hold for many years, but interest often continues to accrue. 

Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers, denied that the companies benefit by veering from the government's orders.

"We are incentivized to meet the requirements that the government sets, which includes giving borrowers the benefits that the law provides," Buchanan said. "We are audited, and get business or lose it based on meeting those standards."

Advocates have also said the interest rates on federal student loans are too high, especially for borrowers from the 1980s , who have rates exceeding 8%. Current fixed rates today can be nearly as high .

2. Borrowers in repayment for 20 years or more

Those who have been carrying their student debt for decades may also benefit.

With many of the Education Department's repayment plans requiring 20 years or more of payments, such stories are common. Millions of Americans older than 60 are still paying off their student loans , research finds.

"There is both financial harm and psychological harm of being in debt for decades, especially when it feels like there is no hope that it will ever be repaid," said Persis Yu , deputy executive director at the Student Borrower Protection Center.

3. Attendees of schools of questionable quality

In its revised relief package, the Biden administration notes it is looking to include student loan borrowers who attended career-training programs "that created unreasonable debt loads or provided insufficient earnings for graduates," as well as borrowers who attended institutions with high student loan default rates.

4. People eligible for forgiveness who haven't applied

The Education Department already has several programs that lead to student loan forgiveness, and as part of its new aid package, it is looking to identify those who may be eligible but just haven't applied.

For example, the Public Service Loan Forgiveness program, signed into law by then-President George W. Bush in 2007, allows certain not-for-profit and government employees to have their federal student loans canceled after 10 years of on-time payments. In 2013, the Consumer Financial Protection Bureau estimated that one-quarter of American workers  may be eligible .

However, the technical and often confusing requirements of the plan have acted as a barrier, experts say.

How Wall Street trades student loans

Student loan servicers also earn a fee per borrower per month, which advocates say discourages transparency around loan forgiveness opportunities.

"Instead of providing borrowers with access to the affordable pathway out of debt, decades of mismanagement and abuse have left these borrowers trapped in debt like hamsters on a hamster wheel with no way out," Yu said.

5. Borrowers experiencing financial hardship

The Biden administration has also said it wants to forgive the debt of those experiencing financial hardship.

So far, it has proposed a set of factors that could identify struggling borrowers, such as those with student loan balances and required payments that are unreasonable relative to their household income, and people with high child care and health-care expenses.

It also said that financial hardship could be based on other debt obligations, disability or age, among other factors. Don't miss these stories from CNBC PRO:

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  • Morgan Stanley's Slimmon names 3 stocks to buy right now: 'It's going to be a good year for equities'
  • This little-known bank is offering one of the highest CD rates

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IMAGES

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COMMENTS

  1. Sources & Uses of Funds

    For example, if the plan is being used to attract investors or secure financing, it may need to be more detailed and include specific numbers and projections. In this case, the section should include spreadsheets or tables that clearly show the funding requirements, sources of funding, and detailed breakdown of how the funds will be used.

  2. Create a Sources and Uses of Funds Statement

    Uses of Funds: The money needed for various purposes for business startup, including Beginning quantities of supplies, equipment, and furniture Purchase of building and land Initial startup costs for rent deposits for rent, initial payments for insurance, etc. Other working capital needs

  3. The 8 Use of Funds Examples for Startups

    8 Use of Funds Examples for Startups 2970 5 0 December 15, 2021 Table of Content Property - Land and Buildings Equipment Development Inventory Marketing Operations Net Working Capital Cash Buffer Starting vs. Scaling of a Startup Business Conclusion: Startups need to specify the intended Use of Funds properly

  4. Source of Funds Examples in a Business Plan: 8 Suggestions

    Source of Funds Examples in a Business Plan: 8 Suggestions July 6, 2022 By Max Freedman A solid business plan is one of the most important documents you'll need to create for your company. This document provides a roadmap for your company's future developments. However, no growth can occur without a sufficient amount of working capital.

  5. Use of Proceeds Statement

    What is the Use of Proceeds Statement? The use of proceeds statement is a short document that summarizes how a company that aims to secure additional capital is going to spend the funds. In other words, the document provides the reader with a snapshot of what aspects of the business the company will spend money on.

  6. How to Prepare a Sources and Uses of Funds Statement

    The statement example in word of sources and application of funds shows the total sources of new funds that are generated between the balance sheet dates and the total uses of those funds in the same period. it is also made up of a list of the changes that occur in all of the Balance Sheet Items between any two balance sheet dates.

  7. Key Considerations of the Sources & Uses of Funds Statements

    For business loan purposes, Attracting investors, and Predicting the impact of changes in the balance sheet The Sources and Uses of Funds have two parts, The first part is the sources from which the company gets its funds, and The second part is the uses, applications, or spending of the money

  8. Building a Strong Business Plan with the Use of Funds Slide

    The Use of Funds slide is a visual representation of your financial strategy. It succinctly outlines how much money you need, what you'll use it for, and over what timeframe. Why It Matters This slide is a make-or-break element of your plan.

  9. Financial Statements for Business Plans and Startup

    Include Financial Statements in Your Business Plan. You will need a complete startup business plan to take to a bank or other business lender. The financial statements are a key part of this plan. Give the main points in the executive summary and include all the statements in the financial section. 09 of 09.

  10. 4 Steps to Successfully Manage Business Loans and Funding

    4 steps to manage small business finances and strategically use your funds. We'll dive into specific funding scenarios later on in this article, but for now, here are the 4-steps you should take to better manage the cash you received. 1. Compare your forecasts to actual performance. Similar to how you don't have all the answers regarding ...

  11. 4 Key Financial Statements For Your Startup Business Plan

    An example of a Balance Sheet forecast (source: Gym financial model template) Financial Statement #4: Use of Funds. The use of funds is not a mandatory financial statement your accountant will need to prepare every year. Instead, you shall include it in your startup business plan, along with the 3 key financial statements.

  12. Sources and Uses of Funds (S&U)

    Uses → The "Uses" side calculates the total amount of capital required to make the acquisition (i.e. the purchase price and transaction fees). Sources → The "Sources" side details how exactly the deal is going to be funded, including the required amount of debt and equity financing. One of the main purposes of a LBO model is to ...

  13. How To Write the Funding Request for Your Business Plan

    The funding request section of your business plan is required if you plan to seek funding from a lender or investors. You'll want to include information on the business, your current financial situation, how the money will be used, and more.

  14. Sources and Uses of Funds Statement

    Uses of funds include farm cash operating expenses, capital asset purchases, decreases in total liabilities, equity capital withdrawals, family living withdrawals, and income and self-employment taxes.

  15. Top 5 Use of Fund Templates with Samples and Examples

    Template 1: Use of Funds Slide Pitch Deck Showcase your company's history, elevate your brand USP, persuade potential investors, and share crucial project insights through our impactful PPT Deck. This 30-slide presentation allows you to organize data, simplify complex concepts, show intricate details, and emphasize critical aspects.

  16. The Sources & Uses of Funds: What You Need to Know

    For example, money received from investors or other funding sources is not revenue. In fact, funding has nothing to do with measuring sales, which is what revenue is meant to show.

  17. Sources and Uses of Funds Statement

    Along with the part of the money, the Top 6 Sources of Funds, non-related to the different sources of statements of funds, are: Funds from operations or trading profits. Issue of Share Capital. Raising of loans and debentures. Sale of fixed assets of long-term investments.

  18. How to Write a Business Plan for Funding

    Here are the core components of a successful business plan for funding. 1. An Executive Summary. The executive summary should cover the essential information about your business: what it does, who it serves, and what you're looking for from the people who read it.

  19. Use of Funds Slide Best Practices With Pitch Deck Examples

    ‍ Financial slides, on the other hand, are more detailed than the use of fund slides. To mention a little, they can be used to help present your company's financials. Some of the most common are the income statement, balance sheet, and cash flow statement.

  20. Write the Funding Request Section of Your Business Plan

    What Is the Funding Request? A funding request section of your business plan allows you to ask for the required fund. While writing the request, you always have to mention the timeline in which you will utilize the funds. Usually, this timeline is up to the next 5 years from the request. The funding request may differ on the age of your company.

  21. Funding Requirements in a Business Plan

    The example below shows the funding requirements information, giving summary details of when the funding is needed, for how long, the amount, and a brief comment on what the funds will be used for.

  22. How To Write A Successful Business Plan For A Loan

    A business plan is a document that lays out a company's strategy and, in some cases, how a business owner plans to use loan funds, investments and capital. It demonstrates that a business is ...

  23. How to Create the Ultimate 'Use of Funds' Slide for your ...

    For example, to maintain an emotional bond with customers, the founder had to know what made them tick (i.e. what made customers see value in his product, thus continuing to pay their monthly ...

  24. PDF City of Chicago

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    A federal law bans candidates from using campaign funds for personal use, making it unlikely that Trump can use campaign funds to help pay off some of the Carroll award and fraud penalty.

  28. Think you know what the top scam of 2023 was? Take a guess

    Examples are Citizens behind the badge, advancing American freedom, Fund for integrative Cancer treatment and some familiar ones like Am Against Drug abuse. A second issue is all the political solicitations (she gets six to 12 inch stacks of mail per day.

  29. Australia set to join global clean energy subsidy race with new green

    Australia plans to unveil a range of financial incentives to drive investment in the local clean energy sector and keep money and talent from being pulled overseas by subsidies in the U.S. and ...

  30. Biden's student loan forgiveness plan: Here's who may be eligible

    The Education Department already has several programs that lead to student loan forgiveness, and as part of its new aid package, it is looking to identify those who may be eligible but just haven ...