Chapter Name: Identify the requirements and processes to obtain the selected financing option for the new venture
Description:Outlines the steps and documentation needed for funding applications.
Purpuse:To ensure readiness when approaching financiers.
Rational:Prepares learners for real-world funding processes and requirements.
Chapter Assessment
Scope of Practical Skill
Key Requirement 1: Identify the requirements and processes to obtain the selected financing option for the new venture
Learners are expected to outline the steps and documentation required to secure the chosen financing option.
Assessment Questions
Assessment 1 : Collateral requirements for accessing funding are identified to determine if they can be met.
Learners identify the collateral requirements of a specific funding method and assess whether they can meet them.
Assessment 2 : The new venture proposals are assessed in terms of available collateral.
Learners gather all required documentation (e.g., ID, tax returns, business plan) and complete a sample application.
Assessment 3 : The information and back-up documentation needed to process application for funding is collected and used to complete the application.
Learners must research and identify laws, regulations, and procedures that govern the process of obtaining business financing.
Assessment 4 : A financing option is chosen that is consistent with the business plan in terms of profit objectives and return on capital.
Learners compare debt financing (loans) with equity financing (owner's capital) and make an informed decision on which option is better suited to their business model.
Assessment 5 : Laws, regulations, rules and procedures covering the provision and use of financial services are observed to ensure compliance.
Learners must identify potential challenges (e.g., lack of collateral, poor credit history) and propose solutions to these challenges when seeking financing.