Like “Exit Strategies,” this is a topic that often appears in sophisticated plans aimed at venture capitalists, and would be a good addition in plans aimed at getting a loan as well.
The use of funds is an explanation of how money received as loans or investment will be spent.
This is easily confused with Sources and Uses of Funds, which is another name for one way of doing a cash flow. Many financial statements have Sources and Uses included. Our cash flow model is actually a modified version of sources and uses of funds.
The uses of funds I assume you’re referring to is required in a few plans, by a few investors, and a few banks. Ironically, if you think about it, the use of funds is actually already showing in a complete plan done with Business Plan Pro, in the expenses and cash flow tables.
I’d add it into the last chapter, financial, as topic 7.1 or 7.2. What they’re talking about, as you obviously already know, is explaining to the investor how you intend to use the new capital you’re asking for. If you want to make a detailed list, you could use your user added table for that; in most cases, I think text treatment would be enough.
Use the menu or the outline button to add that topic in and add your explanation.
-Tim
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