Bootstrap Finance and Financial Goals

The availability of finance for a startup business determines its ability to expand and grow. By using bootstrap finance the growth will be slower but the value of the business needed to meet the personal financial goal of the entrepreneur will be smaller.

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Discounted Cash Flow Valuation Calculator

The free cash flow valuation calculator can be used to value the operations of a startup up business. The calculator uses the free cash flow generated by the business and discounts this at its weighted average cost of capital.

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Crowdfunding and Financial Projections

Crowdfunding is a technique for a business to obtain finance in which small amounts of funding are raised from a large number of people (the crowd). Crowdfunding can be either rewards, debt or equity based depending on the requirements of the business.

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Cost of Trade Credit

When early payment discounts are offered by suppliers, the cost of trade credit needs careful consideration as the effective interest rate can be very high compared to other forms of finance.

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Cost of Offering Early Payment Discount

The cost of offering early payment discount to customers needs careful consideration by a startup business as the effective annual rate is normally very high compared to other sources of finance.

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Monthly Lease Payment Calculator

This monthly lease payment calculator works out the monthly payment (Pmt) needed at the end of each month taking into account the cost of the asset (C), its residual value (R), the lease interest rate (i), the number of payments (n), and the number of advance payments (a) required by the lease agreement.

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Five C’s of Credit

The 5 C’s of credit is one technique used by financial institutions to assess the credit worthiness and risks associated with lending to a business seeking debt finance. An understanding of the five C’s of credit combined with financial projections, will allow a business to be better prepared when approaching lenders for debt funding.

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Bootstrapping Finance Methods

There is a wide variety of funding available for a startup business, but one of the fundamental decisions which must be made by the entrepreneur is whether or not to seek outside equity and long term debt finance to fund growth or to rely on bootstrapping finance methods such as founders equity, short term debt, and revenue to grow the business.

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Small Business Funding Options

A business plan financial projection will identify the funding requirements needed by a business both in terms of maximum or peak amount required and the length of time the funding is needed for.

The length of time the funding is required for is an important consideration when considering small business financing options. The general principle is to try and match the funding term to the assets being funded.

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Monthly Loan Amortization Calculator

To give stability in predicting future cash flow requirements, typically a business will borrow from a bank using a fixed payment loan where interest is compounded monthly and repayments are fixed and paid monthly throughout the term of the loan.

This business loan repayment calculator can be used for any loan up to a maximum term of 120 months (10 years), and will calculate the monthly repayments due on the loan together with the total amount repayable and total interest payable over the term.

In addition this commercial loan calculator will provide a monthly loan amortization schedule.

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10 Things Investors Want to Know

Investors are often the most critical readers of a business plan financial projections since they have limited knowledge of the background to your business and generally invest in riskier situations.

Investor business plan financial projections need to reflect the type of audience they are aimed at and the type of finance being sort. Investors have different requirements from lenders, and will look for different information in the figures.

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