Guidance notes Short form financing proposal template – for small business - PowerPoint Presentation

1. Guidance notesShort form financing proposal template – for small business This proposal has been prepared from the perspective of a small business who is applying for financing from a financier they do not have an existing relationship with.If a relationship already exists with the financier, then less detail might be provided (for example the corporate history, business overview, business model (unless materially changed), market opportunity and market positioning slides could be removed) as the financier would have an understanding of the applicant Financiers are likely to ask for additional information from the applicant to support a proposal – this proposal template does not claim to include all the information a financier might require to approve an application. This additional information requested might include a copy of the company’s financial model and financial accounts prepared by an accountant, among other items. Please customise this presentation to suit your company’s design, branding and colours; take out unnecessary or irrelevant sections or take aspects for your own presentation.

2. Financing Proposal for [Financier Name]Date: YOUR COMPANY NAME

3. Executive summary[Company] is seeking [$X,000]Funds to be used to [reason: e.g., provide working near-term working capital / cash flow support to ensure continuation of business operations etc.][Company] confident repayment can be made [on X terms e.g., monthly instalment amount for 12 months] using [X e.g., proceeds from forecast revenue and savings from restructured business operations (i.e., funding sources)][Company] is [(include as appropriate) eligible for the Government Wage Subsidy Scheme and [insert scheme], and is actively exploring these avenues of assistance among others[Company] is a [producer of X, provider of X services etc.]Was established in [XXXX] and employs [X] team membersRevenue/Turnover of [$X] in [XXXX] and EBITDA of [$X] in [XXXX]Main products / services include [x, y, z] with key customers such as [x, y, z]Competitive advantage of [Company Name] is [unique product line, key relationships][Company] values your time and consideration of this proposal. We can be contacted at your convenience to answer any queries:[Key Contact Name and Position][Key Contact email and phone number]

4. Business highlights[Strong and Defensible Market Position] (e.g., #1 player in X market and voted leading provider for X years running)[Unique [Product/Service] Offering (e.g., first product to solve X problem with X patents secured and “first-mover” advantage)[Track Record of Robust Financial Performance] (e.g., consistent revenue growth with 3-year CAGR of X% and forecast growth of X% per year) [Clearly Identifiable Growth Opportunities] (e.g., addressable market of $X to be reached in X years or $X investment made will allow to reach X,XXX customers in X market][Proven and Experienced Management Team] (e.g., X years collective industry experience gained at x, y, z companies)

5. Corporate history: Our story[Company Name] was established in [XXXX] by x, y, z who developed the idea while on a working holidayUpon return to New Zealand, they opened their first store in x,y,z and with the assistance of investors were able to open [x] stores across the countryAfter a subsequent capital raise, they expended to Australia and have an ambition to open X stores in the United StatesWe now employ X team members across the globe[Company Name] Timeline[Date]:[Insert Description of Milestone / event][Date]:[Insert Description of Milestone / event][Date]:[Insert Description of Milestone / event][Date]:[Insert Description of Milestone / event][Date]:[Insert Description of Milestone / event]

6. Corporate history: What makes us unique? Our vision is to develop the best products for our customers. This is shown in our slogan “be the best”Our unique selling proposition (USP) / advantage is that we have filled a gap in the market not served by larger players with x, y, z brand / product / serviceOur research and development team continually refine our products and through X patents filed we believe we are the leader in our niche market

7. Business overview: Business model [Company Name] provides x, y, z products and services[Company Name] generates revenue by producing X products in New Zealand and sells to both domestic and international customersX% of customers are repeat customers due to our consistent quality and continual improvement

8. Business modelJob$75.00Detailer$63.75Gleamr$11.25GleamrGleamr’s fee is a cost of revenue with guaranteed ROI vs a marketing expense with no guaranteed ROI.User churn: 3% CAC: $5LTV: $100Acquire consumers and auto detailers through referral programme channels, retain through rating system and frictionless user experience (low churn).Our platform connects mobile auto detailers with consumers.By connecting them we create a ‘triple win’ situation for consumers, detailers and Gleamr.To capture value, we charge detailers a 15% transaction fee.

9. Business overview: Key brands / products / divisionsInsert Logos / DescriptionBrand 1 – Luxury products targeted at x,y,zBrand 2 – Essential Services Provider to BusinessesProduct 1 – Everyday clothing item with a novel twist

10. Business overview: Key customers and suppliers[Insert Logos or Customers and revenue detail][Insert Logos or list Suppliers and cost detail]

11. Business overview: Channels to market[Insert detail of how you sell your product or service]For example, we have 2 exclusive retail stores located in X and Y, attracting foot traffic of approximately X,000 people per year[Company Name] also maintains an online presence at [Company Name].com. Our website lists X00 products in 3 main categories and we ship to X, Y, Z countries. We have X online visitors per year. Our main advertising efforts are through print media (local newspaper), online (social media) and a sponsorship of a local community group

12. Market opportunity~$2BillionTOTAL USA AUTO DETAILINGSource: [Some reputable source]MOBILE USA AUTO DETAILINGSource: [Some reputable source]GLEAMRMARKET OPP15% transaction fee$12Billion$36BillionOverview Description of the market and key assumptions or reputable sources (i.e., how you came to this)Other useful information e.g., economic headwinds or tailwinds, expected profile etc. Explanation of the company’s opportunity in chosen sectorDetail of supporting assumptions / calculation e.g., X% of Sector could be captured by [Company Name] based on projection of x, y, z

13. Market positioningMORE CONVENIENTLESS CONVENIENTLESS EXPENSIVEMORE EXPENSIVEYour logoCompetitor LogoCompetitor LogoCompetitor LogoCompetitor LogoCompetitor LogoCompetitor LogoExplanation of the company’s position in the market and its key differentiators from its competitorsExamples of Company’s products / services which establish it at this positionAny other useful information about market dynamics or the competitors

14. Board of directors[Name]ChairInsert picture[Description e.g. X has X years experience in X industry and held roles at x, y, z companies. X completed a degree at X University][Name]DirectorInsert picture[Description e.g. X has X years experience in X industry and held roles at x, y, z companies. X completed a degree at X University][Name]DirectorInsert picture[Description e.g. X has X years experience in X industry and held roles at x, y, z companies. X completed a degree at X University][Name]DirectorInsert picture[Description e.g. X has X years experience in X industry and held roles at x, y, z companies. X completed a degree at X University][Name]DirectorInsert picture[Description e.g. X has X years experience in X industry and held roles at x, y, z companies. X completed a degree at X University]

15. Key management team[Name][Role]Insert picture[Description e.g. X has X years experience in X industry and held roles at x, y, z companies. X completed a degree at X University][Name][Role]Insert picture[Description e.g. X has X years experience in X industry and held roles at x, y, z companies. X completed a degree at X University][Name][Role]Insert picture[Description e.g. X has X years experience in X industry and held roles at x, y, z companies. X completed a degree at X University][Name][Role]Insert picture[Description e.g. X has X years experience in X industry and held roles at x, y, z companies. X completed a degree at X University][Name][Role]Insert picture[Description e.g. X has X years experience in X industry and held roles at x, y, z companies. X completed a degree at X University]

16. Financial overview (Refer to appendix for detail)Financial overviewActual(All figures in NZ$)FY2018FY2019FY2020Profit & LossTotal Revenue6,00010,00016,000% growthn.a.67%60%Cost of Goods Sold(3,000)(5,000)(8,000)Gross Profit3,0005,0008,000% margin50%50%50%Total Expenses(1,000)(2,000)(3,000)EBITDA2,0003,0005,000% margin33%30%31%Cash FlowCash flow from Operations7008001,000Cash Flow from Investing(1,000)(2,000)(2,000)Cash Flow from Financing- - - Net Cash Inflow / (Outflow)(300)(1,200)(1,000)Ending Cash Balance1,000(200)(1,200)

17. Funding requirementsExisting Facilities (if any)$X,000 overdraft facility with X bank $X,000 X-year term loan (P&I) with X bankIf no facilities in place, delete this box or note “not applicable”Preferred Amount and ProductSeeking [$X,000] in an overdraft facility and [$X,000] in X-year term loanTargeting receipt of funds by X dateUsesProvide near-term working capital / cash flow support to ensure continuation of business operations and to top up employee wages to at least 80% during lockdown etc.Preferred TermsExpects capacity to service this amount over 12 months via monthly repayment when business reboundsPrefer term loan to be initially interest only (short-term) then transition to P&I repaymentSecurityCan provide a General Security Agreement over the company's assetsInventory and receivables balance of $X as at [Account Date]

18. AppendicesYOUR COMPANY NAME

19. Organisational chartFounder & CEOCFOGM (Production)GM (Sales & Marketing)Finance Team (3)R&D Team (5)Sales Team (10)Board of Directors [Optional on Chart]Total Full Time Equivalents (FTEs): [XX]

20. Shareholding structure[HoldCo Name]Shareholder 1Shareholder 2Shareholder 3[OpCo 1 Name][OpCo 2 Name]100%100%50%25%25%

21. Financial overview (P&L)Profit & LossActual(All figures in NZ$)FY2018FY2019FY2020RevenueProduct 11,0002,0003,000Product 22,0004,0008,000Product 33,0004,0005,000Total Revenue6,00010,00016,000% growthn.a.67%60%Cost of Goods Sold(3,000)(5,000)(8,000)Gross Profit3,0005,0008,000% margin50%50%50%ExpensesSelling, General & Administrative(1,000)(2,000)(3,000)[Note: Break down line by line as appropriate]- - - [e.g., consultancy fees, insurance, - - - legal & accounting, ICT, marketing, R&D, other]- - - Total Expenses(1,000)(2,000)(3,000)EBITDA2,0003,0005,000% margin33%30%31%

22. Financial overview (balance sheet)Balance SheetActual(All figures in NZ$)FY2018FY2019FY2020Cash in Bank1,000(200)(1,200)Accounts Receivable1,0002,0003,000Inventory2,0002,5005,000Other Current Assets500500500Current Assets4,5004,8007,300Accounts Payable2,0002,5004,000Other Current Liabilities1,0001,0001,000Current Liabilities3,0003,5005,000Working Capital5001,5003,500Fixed Assets / PPE10,00011,00012,000Net Assets11,50012,30014,300

23. Financial overview (cash flow)Cash Flow StatementActual(All figures in NZ$)FY2018FY2019FY2020Opening Cash Balance1,3001,000(200)EBITDA2,0003,0005,000Movements in Working Capital(500)(1,000)(2,000)Corporate Tax(800)(1,200)(2,000)Cash flow from Operations7008001,000Capex(1,000)(2,000)(2,000)Disposals- - - Cash flow from Investing(1,000)(2,000)(2,000)Equity Raise- - - Change in Debt- - - Interest Expense- - - Cash flow from Financing- - - Net Cash Inflow / (Outflow)(300)(1,200)(1,000)Ending Cash Balance1,000(200)(1,200)

24. Key commentary on historical performanceHistorical financialsProvide any relevant commentary on historical financials over timeCan also highlight strong periods of historical trading which would show a track record for a financier to gain comfortConsistent gross margin and EBITDA margins demonstrate ability to control costs Cash balance in FY2020 is now significantly negative putting strain on overdraft facility which has rarely been used. Company now requires additional financing in order to relieve cash flow issues in near-termWorking capital and asset baseProvide relevant commentary on Working Capital profile e.g., working capital position increasing from FY2018 to FY2020 as increase in receivables has occurred – have not been able to manage receipts as well as would have hopedCompany maintains a strong fixed asset base which is made up of production machinery. This could be liquidated in a “worst case scenario”Company remains in a robust net assets position

25. ContactYOUR COMPANY NAME[Name][Position]Email: xxxxxxPhone: xxxxxxMobile: xxxxxxAddress line 1Address line 2Address line 3Address line 4Address line 5[insert company logo]