Intermediate level · Module 5: Formalisation, Funding and Teams · Lesson 2 of 3
Funding Options
Choose funding that fits the business and its risks.
In this lesson you will
- Compare funding sources
- Calculate what a loan really costs
Key concepts
savings and savings groupsloans and interestgrantsinvestors
The lesson
Funding options include own savings, savings groups, family, microfinance or bank loans, grants and investors.
Loans must be repaid with interest whether or not sales grow; check the total cost and repayment schedule against the cash flow forecast.
Grants have conditions and reporting; investors expect a share of the business and returns.
Step by step
- List available options.
- Compare costs and conditions.
- Test a loan against the forecast.
- Choose a funding mix.
Practice activity
Write your funding plan.
Expected result: A funding plan tested against cash flow.
Check your understanding
-
What must be checked before taking a loan?
Show answer
Total cost and whether the cash flow can repay it.
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What do investors expect?
Show answer
A share of the business and returns.
Taught live by an instructor — online or in person. Free course lessons are for self-study and do not lead to a certificate — see registration options.