The financing plan
A start-up's lasting needs and resources, working capital requirement, self-financing capacity, the three-year plan, and what each source of funding asks for in return.
- 26 cards
- 6 topics
- Free
The outline, topic by topic
Each topic is weighted the way the exam weighs it.
- Concepts
- Questions
- Sort and link
- The numbers
- Scenarios
- Understand
A few cards from the deck
Financing plan: what is it?
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A table that sets what the project needs to start and last against the resources planned to pay for it, so that they balance.
At the start: set-up costs, investments, working capital requirement and starting cash on one side; contributions, partners' loan accounts, grants and loans on the other. The missing figure is the loan.
Which resource does the three-year plan add that did not exist at the start?
- The self-financing capacity generated by the activity
- The set-up costs paid before opening
- The honour loan paid to the founder
- The working capital requirement of the first sales
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The self-financing capacity generated by the activity
At the start, the activity has produced nothing yet. Set-up costs and working capital requirement are needs, and the honour loan is already a resource in the initial plan.
The initial financing plan balances lasting … and lasting …; the loan is the difference between the two.
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The initial financing plan balances lasting needs and lasting resources; the loan is the difference between the two.
With 100,000 euros of needs and 45,000 euros of resources apart from the loan, 55,000 euros must be borrowed.
Working capital requirement: what is it?
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Money tied up by the gap between the moment one pays suppliers and stock and the moment customers pay.
It grows with sales: the more the business sells on credit, the more money it advances. It is a need to fund, both at the start and in the three-year plan.