ABSTRACT
The finance section is probably the most difficult part of the business plan to prepare for most business owners. Usually, a combination of various sources is used to finance a business. Basically, there are two categories of financing: debt financing and equity financing. Sources of debt capital like banks are looking for asset security to back their loan in order to be sure of getting their money back on demand. They also charge an interest rate which reflects the current market conditions and their view of the risk level of the current proposal. The cash flow forecast shows how much cash is required to reach the objectives of the business and when it will be needed. A balance sheet is a financial statement which shows the financial position of a business at a particular point in time. A profit and loss account is a moving picture of how well the business is doing in terms of sales, costs, and profitability.
