Page 202 - Winning The Credit Game Bundle (CK Patrick)

toward the end of Chapter 2. If you have been following our six-
month plan, you may have learned a lot about what does and
doesn’t work to make your business profitable by now. You may
also have expanded your cash flow using the credit lines you’ve
acquired over the last four months. Your newly gained experi-
ence and knowledge will help you make the most impressive
possible business plan to show to lenders.
Use this as an opportunity to optimize your business finances
and operations as well. You may realize something while
updating your business plan that could help you to make more
money if implemented across your company.
Once your business plan is up-to-date and looks great, you
will also want to create a funding request for your potential
lenders. Explain how much funding you are asking for and why.
Do you want debt or equity, and why have you made that
choice? What repayment term would you like, and why? What
will you do with the loan money?
If possible, use your funding request to break down a budget
for how you will spend the loan money and cite any numbers
that lead you to believe you will get a positive return on
investment.
Consider questions like how much revenue an average
employee, store location, or piece of equipment generates for
you if you plan to use loan money to pay for these. Consider
questions like what kind of ROI your history and research
suggests you can get from the marketing campaign you have
planned if you plan to use the funding to do marketing. The
more specific numbers and details you can cite to convince
lenders that you will make a positive return on investment for
the loan money you spend, the more likely they will be to grant
your loan.
You may also wish to include financial projections in your
business plan and/or funding request. Include income state-
ments, balance sheets, and cash flow statements from your busi-
ness’s past five years (if your business has been around that
long). Include projections for how you expect these numbers to

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