REQUEST FOR FUNDING – Some Things to Consider

Requesting funding can be accomplished in several individual ways, or a combination of methods. Here is a breakdown of what is needed in most cases:

Step one is to have a solid business plan completed. Your plan will include most of the elements that the lender or investor will want to see.

Step two is to be specific about the funding you need. In some instances, having a separate letter or package to accompany the business plan will be most appropriate, and in other cases including the request within the business plan will be best. If you are presenting your business plan to several different prospects, you may want to prepare a separate package and customize the request for funding to each lender/investor.

Request For Funding Letter should mention:

a) Brief Introduction thanking the reader for the opportunity to present the request.

b) Desired Amount.

c) Desired Terms.

d) Company Name.

e) Industry Type.

f) Time in Business.

g) Principals.

h) Use of Funds.

i) Collateral Offered.

j) Stage. If you are a start-up, established and seeking to grow internally, or seeking a strategic partner, explain what the stage your company is in and what you are trying to accomplish.

k) Experience. Prove in writing that that your experience or your team’s track record or areas of expertise are more than sufficient to maintain a successful business.

l) Character. Provide elements of your character that leaves the lender/investor confident in you. Highlight how you are resilient, calm, assertive, etc. when those characteristics are necessary.

m) Additional Information. You may wish to include additional items, should they be relative to your situation or the requirements of the lender/investor, including:

- Current Debt.
- Owner’s Equity Portion.
- Cash Invested and is cash still available?
- Current Credit Condition of the Owners or the Business.

ION FreshStart’s Advanced Business Planning has a special folder for Request for Funding. It includes:

* Bank Loan Application Samples
* Amortization Schedule Sample
* 5-year Amortization Schedule, blank
* Investment Package Sample
* Link to Keynote Presentation Sample

Visit www.ionfreshstart.com to download our business planning system.