Sample Cost and Financing Sheet

The cost and financing section is important because it breaks down all of your start up costs and financing. Lenders want to know: How much will the start up going to cost? And how are you going to finance it? Very important, especially if you are approaching lending and funding agencies. This is the cost and financing sheet for our fictitous company, ABC Cleaners.

ABC Cleaners is approaching SPA for funding contributions, and a bank for a loan. This is how they are going to structure their financing.

ABC Cleaners
Projected Funding and Financing

Projected Costs		Financing
Capital & Operating	$	Capital & Operating	Amount	%
Office furniture	$12,500	Cash equity	$12,950	10%
Computer equipment	$7,500	SPA funding	$71,225	55%
Telephone	$5,000	Commercial financing	$45,325	35%
Leasehold improvements	$7,500
Vehicles (3 vans)	$60,000
Cleaning equipment	$15,000
Legal	$1,500
Sign	$1,000
Working capital	$5,000
Inventory	$15,000
Sub total	$129,500	Sub total	129,500	100%
Marketing	$	Marketing	$	%
Grand opening	$1,000	Cash from operations	$2,400	40%
Marketing	$5,000	SPA funding	$3,600	60%
Sub total	$6,000	Sub total	$6,000	100%
Business support	$	Business support	$	%
Mentoring & accounting	$10,000	Cash from operations	$2,500	25%
		SPA funding	$7,500	75%
Sub total	$10,000	Sub total	$10,000	100%
Total project costs	$	Total project financing	$	%
Capital & operating	$129,500	Cash equity	$12,950	8.9%
Marketing	$6,000	Cash from operations	$4,900	3.4%
Business support	$10,000	Commercial financing	$45,325	31.2%
		SPA	$82,325	56.6%
Grand Total	$145,500	Grand Total	$145,500	100%

Notice how everything balances out in each of the 3 sections, capital, marketing and business support. When putting together a cost and financing package, make sure all costs and financing balance out. Look closely at these figures and compare them to whats on the balance sheet. You will notice what items are included on the balance sheet such as the fixed assets, loan, equity and depreciation. This will help you place those items on the balance sheet.

Continue to 3 year projected income statement

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