Dr. Paul Borosky, DBA, MBA
Business Plan Writer · Business Consultant
How to Write a Business Plan Funding Request
A vague funding request kills a loan faster than weak sales. Lenders want an exact amount, a uses of funds table that adds up to the penny, and a clear repayment source. Watch Dr. Paul build one, then follow the example below.
Last Updated: 10/30/2026 · Written by Dr. Paul Borosky, DBA, MBA
Watch First
Watch: How to Write a Business Plan Funding Request
The Short Answer
What Is a Funding Request in a Business Plan?
The funding request is the section of a business plan that states exactly how much money you need, what every dollar pays for, the loan terms you want, how you will repay it, and how much of your own money is in the deal. It is the section a lender reads most closely.
Here is the problem. Owners write "We need about $150,000 to grow." A lender reads that as "I have not done the math." The fix is simple: break the number into line items, show your own stake, and point to the cash flow that repays it.
Need a Plan That Gets Funded?
What to Include
What Goes in a Business Plan Funding Request?
- 1
The exact amount
One number, to the dollar. Not a range. It must match your executive summary and your financial projections.
- 2
Uses of funds
A table that lists every purchase and adds up to the exact amount requested. Equipment, buildout, inventory, working capital, fees.
- 3
Terms requested
Loan type, length, and the rate you expect. For example, a 10-year term loan or an SBA loan. See how to compare business loans.
- 4
Repayment source
Where the payment comes from: projected cash flow from operations. Show the annual payment next to the cash available to cover it.
- 5
Collateral
What secures the loan: equipment being purchased, real estate, or other business assets. List each with an estimated value.
- 6
Owner equity
How much of your own cash goes in. Lenders want you to have money at risk too.
Worked Example
What Does a Uses of Funds Table Look Like?
Say a bakery owner is opening a second production kitchen. Total project cost is $150,000. Here is the uses of funds table.
| Use of funds | Amount | Share |
|---|---|---|
| Deck oven, mixer, and proofer | $68,500.00 | 45.7% |
| Kitchen buildout and plumbing | $42,000.00 | 28.0% |
| Opening inventory | $9,800.00 | 6.5% |
| Working capital (three months of payroll and rent) | $25,000.00 | 16.7% |
| Closing costs and permit fees | $4,700.00 | 3.1% |
| Total project cost | $150,000.00 | 100.0% |
Now split the sources. The owner puts in $22,500.0 (15%) and requests a $127,500.0 loan (85%). Check: $22,500.0 + $127,500.0 = $150,000.
Coverage = Cash Available ÷ Annual Payment
- Loan
- $127,500.0 at 11% for 10 years
- Payment
- $1,756.31 a month, $21,075.72 a year
- Cash
- $41,200 a year projected to cover debt
- Coverage
- $41,200 ÷ $21,075.72 = 1.95, a cushion of $20,124.28 a year
Always include working capital. Owners budget for every oven and forget the three months of payroll before sales catch up. A plan that runs out of cash in month four gets declined, even if the equipment list is perfect.
Avoid These
What Are the Most Common Funding Request Mistakes?
- Asking for a range. "Between $100,000 and $200,000" says you do not know your costs. Give one number.
- A uses table that does not add up. If the line items total $148,300 and you ask for $150,000, the lender asks where the rest goes.
- No owner equity. Asking a lender to carry all the risk is a fast decline. Show your stake.
- No repayment math. "Sales will cover it" is not a plan. Show the payment and the cash that covers it.
- Mismatched numbers. The request, the summary, and the projections must show the same amount.
Still deciding where the money comes from? Start with how to fund a small business. Applying for an SBA loan? See whether you need a business plan writer for an SBA loan.
The New Jersey Economic Development Authority sends federal small business capital through lenders and investors, so your plan still has to pass normal underwriting. Prepare for that review with the New Jersey business plan writer page.
Real World Use
How an Owner Uses a Funding Request
An auto repair shop adding two bays
Say you run an auto repair shop and want two more bays. Your first draft says "about $100,000." Then you price it: lifts $38,000, diagnostic scanner $21,500, signage $6,500, and working capital $29,000. Total: $95,000.
You add $14,250 of your own cash. That is $14,250 ÷ $109,250 = 13.0% of the total project, and it shows the banker you have skin in the game.
The request drops from a round guess to an exact number backed by quotes. The banker stops asking "what is this for?" and starts asking about terms.
Short on collateral? New Mexico's economic development department runs a collateral assistance program that owners reach through a participating lender. Dr. Paul explains how to use it on the New Mexico business plan writer page.
Keep Going
More Videos in This Series
How to Customize the Funding Request in a Business Plan Template
Dr. Paul shows how to edit each part of the funding request section in a template. (7:36)
Business Plan Writer Tip: The Funding Request
A quick tip on what lenders expect to see in the funding request. (2:13)
Basic Business Plan Example
See where the funding request sits inside a complete plan. (7:14)
Questions
Funding Request Questions Owners Ask
What should a business plan funding request include?
How do I calculate how much funding to ask for?
Should I include working capital in my funding request?
How much of my own money do lenders want to see?
Where does the funding request go in a business plan?
Build a funding request lenders can follow.
Dr. Paul's How to Write a Business Plan in Ten Steps covers the funding request and every section before it, the same ten steps he uses on client plans.
Written by Dr. Paul Borosky, DBA, MBA, current college professor, business consultant, and author with 14+ years and 1,000+ businesses served.
This page is for general educational purposes only. It is not financial, investment, legal, or tax advice.