• Ralph

How to Write the Financing and Funding Request Section of a Business Plan

Updated: Jan 7

"It is more rewarding to watch money change the world than to watch it accumulate." –Gloria Steinem

By now, you’ve made significant progress in your business plan development. With this, the eighth article in our creating a detailed business plan series, we’re going to focus on including a funding request.


Business plans are generally the catalyst for the explicit purpose of requesting banks, lenders, and investors to invest money into a company. On most occasions, the business plan and funding help support business growth or rapidly scale a startup company.


As you can imagine, this makes the funding request section extremely important. Business plans can be written even in ample existing funding and can be in stages to support different business expansion phases. If you aren’t looking for outside investment,

you can choose to omit a funding request.


How Much Money and Duration?

A funding request is no time to be shy. Your readers will know what funding you’re after when they get to this section, so be forthright. Declare your business funding needs now and in the future. Give exact figures, and spell out any further infusions you’ll require over the next five years.

Explain how long the funds will be needed, when you plan on repayments, and when the investor can expect a return. It’s also helpful to spell out whether you’d prefer a loan, a grant, or a direct investment, and any other relevant terms that you would like included. For example, are you willing to give up equity in your business to secure the loan, or will be you personally underwriting the loan from your assets?


How Do You Plan on Using the Requested Funds?

It’s unlikely that anyone will give you money if they don’t have a solid understanding of how you plan on using the funds. So be explicit when explaining the purpose of your request. For example, note whether the funding will go toward working capital, additional equipment, or business expansion to new premises or regions. If you are growing your team or expanding your operation, describe your plans. If you plan on buying another company, explain what this will do for your bottom line and cash flow.


You might also be using the funds to retire debt, create and market a new product line, or possibly a combination of things. Whatever the use, be rigorous in your explanations.


Business banks and investors aim to secure a reasonable return on their investment. So they’re far more likely to fund businesses that plan to use the money to grow and become more profitable. But, on the other hand, if they get the sense that the money is just helping to string along a failing enterprise or the owner is not clear on the funding required, they’ll stay away.


What Are Your Long-Term Plans for the Business?

If you have any solid, situational plans for the business that might positively impact investors, you should spell them out.


Consider your plans for scaling your business. If there’s an expectation of a lucrative buyout or acquisition after meeting specific benchmarks, mention this. If you plan on selling a portion of the company to focus your efforts in more profitable areas, describe your plans.

Mention any primary debt service you plan to make, mainly if it will put your company on a firmer footing for the future.


Why Should Investors Trust You?

This question is critical. It would help convince your readers that you would be a good steward of their money and your business. They aren’t giving you money out of the kindness of their hearts, after all. They expect to be paid back and to realize a healthy return. If they feel they can’t trust you or your ability to make this happen, they likely won’t want to get involved.


Make sure to explain the assumptions you’re making in your plans and provide the proper financials to support your contentions. Let the data speak. If you’re correct, the research will bear out our position.


You Can Do It, and Noirwolf Can Help

Putting together a funding request can be daunting. Asking your accountant for help is always a good idea. You can also use tools such as Microsoft Excel and financial planning software like LivePlan. If you need further assistance, we’re ready to help out. Contact us today to learn more about Noirwolf consulting services and how we can be of great help to you.


About Noirwolf Consulting

Noirwolf Consulting is a trusted provider of professional business plan writing services and consulting services for entrepreneurs, startups, and small-midsized businesses in the UK and USA markets.

Our business plan development process includes all critical aspects to help you create a successful business plan customized to meet your individual needs, whether it is starting your business or looking to secure a bank loan.

Our business plans typically include - company overview, market analysis, competitor research, marketing, sales approach, operations plan, and a comprehensive financial forecast with projected financial statements—ideal for bank loans, financing, or to support a business manager visa application.


You can see all the information in one place and modify it to suit your financing or immigration visa requirements.


Registered Address: 15 Queen Square, Leeds, West Yorkshire LS2 8AJ, England United Kingdom

Contact Noirwolf today: enquiries@noirwolf.com or call us on +44 113 328 0868

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