Finance · Funding and capital · Component
Funding plan
The capital the organisation expects to need over the planning horizon, when it needs it, and the sources under consideration.
The deliverable
What it is
A funding plan turns a vague sense that money will be needed into a dated requirement with a purpose attached. Without the purpose, a raise tends to be sized to what investors or lenders will offer, which is a different number from what the plan needs.
The runway figure comes from Cash flow. The plan uses it to work backwards: if a raise takes several months and the runway is shorter than that plus a margin, the raise has already started late.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
Requirement
The amount of capital needed, the date it must be available, and what it is meant to fund.
3 attributes: Amount · Needed by · Purpose
LearnSource options
The funding routes being compared — retained cash, forms of debt, equity, grants — with their cost and conditions.
3 attributes: Source type · Expected cost · Conditions attached
LearnRaise timeline
When the raise must begin for the capital to arrive before the runway reaches its safety margin.
3 attributes: Lead time · Start by · Status
Learn
Size the raise to named purposes. A raise sized to what is on offer answers a different question.
The other components in funding and capital
Capital structure
The current mix of equity and debt, who holds each part, and the mix the organisation has decided to aim for.
LearnCovenant and rights register
Everything a capital provider can require, restrict or trigger, held in one place with the current headroom against each.
Learn