Finance Plan for New Business

[Tearz]

Hi Chaps,

I have a draft busines plan in place but needs more assistance/help with the Finance Plan for my new business.

I don't want to pay high fees to accountants who has experience in the starts up as I don't have much funds in place. Is there anyone in here who can help me but I am happy to pay a small fee.

Thanks

[JustinP1]

Who or what is the 'Finance Plan' for?

Is it for a bank?

[Tearz]

JustinP1 said:

Who or what is the 'Finance Plan' for?

Is it for a bank?

Yes, it's for a Bank.

[JustinP1]

Thought so!

What they basically want to know is how much money you need, and where you want it to come from.

This is something which is pretty important to them as it signifies their level of risk. The majority of startups don't last more than a couple of years, so they are decidedly shaky when it comes to lending out money.

What amounts of money are we talking about, and what will it be spent on?

[Tearz]

And I have a friend who may be interested to invest his own money into the business, by buying some shares off me. He has said that he would look at the business/finance plan.

But I would be going to the bank first

Anyone who can help me?

[JustinP1]

Going to the bank for a business loan for a new startup does not often end in happiness.

For a business loan to a startup they will need some sort of guarantee, and you will most likely be the person asked to give it. If this is a large amount of money you will also be asked to put up collateral to guarantee it too.

You will find that as you are guaranteeing it anyway you can get a cheaper rate just by getting a personal loan.

What type of amounts would you be looking at, and will it be for running costs, equipment, premises or what?

[spikeyhead]

What business sector is it in?

If its something that I'm familiar with then I'll have a look at it.

[Tearz]

You have PM

[spikeyhead]

Sorry, not a business sector I'm familiar with so I'll have to leave it.

[Andrew[MG]]

Go along to the bank and follow their instructions for making a financial plan. Even if you don't end up using them for a loan you will at least learn what they are looking for.

[rje]

I spend my working working life looking at business plans and projections for Private equity backed Management buyouts with a view to cashflow lending and hopefully getting the banks money back.

From a banking perspective the key points have already been made, but it is also worth saying that bankers want comfort that the risk issues have been thought through. In addition, people to see that potential borrowers know what they are doing and have assessed the detail. Business plans writing and prepring financial projections force people to think thorugh their ideas and focus on some of the detail.

PM if you want to and I will try to give some input, although its a long time since I did small business / start up lendin.

Good luck.

R

[DonnyMac]

Contact your local ‘Business Link’ they’ll subsidise approx 70%+ (I think) of someone in the know looking over your plan and preparing it for funding.

The scheme is called ‘Access to Finance’ – ping me an email and I’ll send you the pdf.

Best,
Don

[Carsie]

Glad to help -its part of what I do - I'm away in sunny climes at the minute but working with Client so have free time in the evening.

Drop me an e-mail outline your plan/idea- I can provide NDA's obviously and check our website so
you that you know the scope- don't worry about costs.

Always glad to help -