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How a Financier Reads a Business Plan and Tips for Writing a Business Plan
This article explains the importance of a business plan when seeking help from a financier. In addition it provides useful tips for writing a business plan.
A business plan has four main purposes.
1. To establish the viability of your business
2. To document your objectives and forecasts for the business
3. To benchmark and measure progress
4. To communicate your plans to outsiders such as a financier
There are two types of financier, the lender and the investor that you may approach or who may be interested in your company venture.
The Lender i.e. a bank will be looking to see how you propose to handle potential risks that your company may encounter. Their main concern is regarding the security of the repayments for the money they have loaned you, and will therefore want to ensure that you will be managing the companys risk wisely. As well as checking your credit rating a bank manager may ask you a number of questions in an interview which you will need to be able to answer, such as:
Why do you need the amount requested?
What will you do with it?
How do you know its enough?
How much less can the company survive on?
What other sources of finance do you have or who else are you borrowing from?
How are you going to pay it back?
What collateral or guarantee do you have?
You need to ensure that these questions are already answered in your business plan as it is much harder to change the managers mind in your interview with them. The bank will look for collateral and cash flow within your plan.
Make sure you are not afraid to ask for the exact amount required, because if they lend you an amount that is not enough to get the business going and you need to ask the bank for more money, they may question how well you have planned your financial requirements. This could make them sceptical about lending you more.
Professional Investors accept risk, although they will try to limit their exposure to it. The questions they may be asking themselves while reading your business plan are:
How much can I make? They are usually looking to make around 30-50% annual compound growth on their investment
How much can I lose? What is the risk of losing their investment?
How can I get my money back or out of the company?
Who else is investing it this company?
So now you know why it is important to have a business plan when seeking investment from a financier, the article will give some useful tips for what to include in the business plan. The business plan should summarise the following points:
The overall objectives of your company.
Who your clients will be and their current buying behaviour.
Who your suppliers are and how much bargaining power they have.
Who your competitors are and how you will differentiate yourself from them.
Who are the key personnel and what their core skills are.
How the business will operate, including the assets needed to run it.
How much finance is required; and contingencies should sales fail to meet the forecasted level.
To conclude, business plans are very useful for raising finance for a business. Even if you are lucky enough to be in a situation where you do not need to raise capital, preparing a plan will help focus your thoughts, check your calculations, help you monitor results and enable better communication of your ideas.
No Debit Card Payday Loan – Simplifying your financial needs
No debit card payday loan is specifically designed for the salaried people as this kind of solution allow to pay your daily expenses without any hassels. Gone are the days when the people had to stand in the long queue for the loan verification which wasted considerable amount of their time. Payday loans has broken the conventional pattern of lending as this kind of loan turns out to be more sophisticated and user friendly. Applying for no debit card payday loan service proves to be very simple as it does not have any lengthy procedure associated with it. You just have to file in the application form on-line. Once the given information gets verified one of the lenders guides you in completing some formalities related to this facility. After this procedure gets completed the loan amount get transferred to your bank account on the same day or the next. To avail this kind of service there are certain conditions laid like one must be at least 18 years of age or above and should be employed in UK other than this the person must be having a valid bank account and should be receiving a regular salary.
This kind of loan is steadily gaining its importance in UK as this kind of facility has got certain advantages linked to it. Its user friendly approach provides fast and instant loans for all the kinds of borrowers which enable these people to meet any of their financial needs quickly. To make this facility convenient for the borrowers one can even repay the loan in easy monthly installments. As in this type of loan there is no credit check involved so the cash transfer becomes quite efficient. Further you can use this loan amount for meeting any of your short term needs thus saving you from financial crisis. This kind of loan proves to be fast and effective because of its prompt response and provides it borrowers an instant cash within short period of time.
By availing a no debit card payday loan facility the borrowers not only save their money and precious time but also prevents them from running around helplessly to avail a loan. An important thing that one must consider before opting for this kind of loan is to check the authenticity as there are numerous financial companies that provide no debit card payday loans at an attractive rate of interest. So it is advisable for the people to properly go thorough the terms and conditions and finally select that offer that match according to their requirement.