There are many sources who offer business funding today. Your business plan or proposal must indicate the full amount of loan, date and time the money is needed, how you intend to use the cash, date and time you plan to repay the loan, and the collateral whether share or bond certificate, property, fixed assets etc.
The accurate and professionally compiled fiscal data, and subsequent analysis and rating, enables the entrepreneur, competitors, and lending institutions, to determine the amount of business that can be extended, the interest rates that can be applicable (in case of a loan), line of credit that can be extended, and the business’ position in the market.
Having been employed by the shareholders of the company to manage the funds, it is one of his duties to ensure that the funds entrusted to him and to the company by the shareholder are responsibly used, and to the end, the best returns can be given to the shareholders of the company without having to dabble with the dark arts of financial malpractices.
Maintaining liquidity should be one of the primary aims of every company, no matter what industry they operate in. Every business comes with a certain degree of risk after all, and the company should have the ability and the cash to meet any unexpected expenses when they arise.
You will probably need some form of business plan to present to the bank or loan company in order to inform them of the viability of the business and your ability to make the extra payments They will want to see a proposed cashflow, a profit and loss account and any previous financial accounts you have available.
