Guidance notes Short 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
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Guidance notes Short 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.<br>
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Financing Proposal for [Financier Name] Date: YOUR COMPANY NAME<br>
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Executive summary [Company] is seeking [$X,000]
Funds to be used to [reason: e.g., provide working near-term working capital / cash flow support to ensure continuation of business operations etc.]
[Company] confident repayment can be made [on X terms e.g., monthly instalment amount for 12 months] using [X e.g., proceeds from forecast revenue and savings from restructured business operations (i.e., funding sources)]
[Company] is [(include as appropriate) eligible for the Government Wage Subsidy Scheme and [insert scheme], and is actively exploring these avenues of assistance among others
[Company] is a [producer of X, provider of X services etc.]
Was established in [XXXX] and employs [X] team members
Revenue/Turnover of [$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]<br>
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Business highlights <br>
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Corporate history: Our story [Company Name] was established in [XXXX] by x, y, z who developed the idea while on a working holiday
Upon 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 country
After a subsequent capital raise, they expended to Australia and have an ambition to open X stores in the United States
We now employ X team members across the globe<br>
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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 / service Our research and development team continually refine our products and through X patents filed we believe we are the leader in our niche market<br>
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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 customers X% of customers are repeat customers due to our consistent quality and continual improvement<br>
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Business model Gleamr Gleamr’s fee is a cost of revenue with guaranteed ROI vs a marketing expense with no guaranteed ROI. User churn: 3% CAC: $5 LTV: $100 Acquire 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.<br>
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Business overview: Key brands / products / divisions Insert Logos / Description
Brand 1 – Luxury products targeted at x,y,z
Brand 2 – Essential Services Provider to Businesses
Product 1 – Everyday clothing item with a novel twist<br>
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Business overview: Key customers and suppliers [Insert Logos or Customers and revenue detail]
[Insert Logos or list Suppliers and cost detail]<br>
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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<br>
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Market opportunity TOTAL USA AUTO DETAILING
Source: [Some reputable source] MOBILE USA AUTO DETAILING
Source: [Some reputable source] GLEAMR MARKET OPP
15% transaction fee $12
Billion $36
Billion Overview
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 sector
Detail of supporting assumptions / calculation e.g., X% of Sector could be captured by [Company Name] based on projection of x, y, z<br>
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Market positioning Competitor Logo Competitor Logo Competitor Logo Competitor Logo Competitor Logo Competitor Logo Explanation of the company’s position in the market and its key differentiators from its competitors
Examples of Company’s products / services which establish it at this position Any other useful information about market dynamics or the competitors<br>
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Board of directors<br>
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Key management team<br>
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Financial overview (Refer to appendix for detail)<br>
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Funding requirements<br>
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Appendices YOUR COMPANY NAME<br>
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Organisational chart<br>
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Shareholding structure<br>
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Financial overview (P&L)<br>
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Financial overview (balance sheet)<br>
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Financial overview (cash flow)<br>
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Key commentary on historical performance Historical financials
Provide any relevant commentary on historical financials over time
Can also highlight strong periods of historical trading which would show a track record for a financier to gain comfort
Consistent 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-term
Working capital and asset base
Provide 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 hoped
Company 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<br>
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Contact YOUR COMPANY NAME [Name] [Position]
Email: xxxxxx Phone: xxxxxx Mobile: xxxxxx
Address line 1 Address line 2 Address line 3 Address line 4 Address line 5
[insert company logo]<br>
