The Financial Model

When requiring funding, a financial model is needed to show that repayment is possible and the longevity of the project, they are providing funds for. Funders need to see a realistic financial picture of your business.

A sound financial model will provide funders with all the necessary information to populate their funding model which their decision will be based on.

Not only can for funders, but the financial model will also provide you with your budget.

Depending on funding need the financial model will include:

  • Capex
    • Construction and Land
    • Equipment
    • Working Capital
    • Pre-operational expenses
    • Marketing
    • Capital raising and legal fees
  • Revenue
    • Type and quantity of product or service
    • Occupancy and growth
    • Revenue streams (Price per product or service)
  • Expenses
    • Staff numbers and salaries
    • Electricity and water
    • Rent (If applicable)
    • Other operational expenses
  • Interest and depreciation
    • Loan repayment schedule
    • Interest
    • Depreciation and Amortization
  • Financial Results
    • Income and Expense Statement
    • Net Profit
    • Balance Sheet
    • Cash Flow Statement
    • Internal Rate of Return (IRR)