Enllaços accesibles

Home Page Main menu Contents Search Site Map

Business plan

Essential financing conditions

The sections of this guide had helped us to collect enough information to explain the financial needs of the new activity. Financing resources are specific in every country, above all for an emerging business. Moreover, they change with the time. 

In general, we can offer different options at the disposal of the business project promoters: to have shares in a risk capital company, to have shares of a financial or industrial partner, short-dated and long-dated credits (if the company is capitalised enough), mortgages and participative loans.

The financial forecast may specify the amount of money given to finance equipments and the amount given to circulating capital. The financing schedule may be also specified as well as if the payment can be done in some terms or in a sole payment. Promoters' (founding partners) contribution to financing may be also detailed, because this is a previous condition for financial investors to invest their funds. (Founding partners may make a significant contribution of funds if they want their commitment to be definite).  

Credits can require a guarantee. Before applying for a credit we may be completely sure that we dispose of enough assets or guarantees to apply for the credit. 

Control list
  

  • According to financial forecasts, the amount of money in cash needed to start the activity may be specified as well as how could take place the return. 
  • According to cash flow forecasts, we may know the amount of resources needed. 
  • Which needs will the founding partners face?
  • From where we expect to get the rest of the funds? Stock issue, credit? Which percentage according to the whole needs?
  • For the stock issue? How is the company evaluated?
  • What is offered to an external investor?
  • What possible outcomes has the investor? How will be the future increase in value done?
  • Which guarantees are extended in order to get a credit? 
  • How could the company fail and what is the risk?
  • How are we supposed to control or reduce these risks and their consequences?                  

Updated 9/5/2005

© 2007 Generalitat de Catalunya Disclaimer  | About the site