How to write a business case for funding
Are you thinking of applying for business finance? Making sure that you have access to the funds you need to maintain a steady growth rate, complete key projects and support day-to-day operations is fundamental to your business’ long-term sustainability. But before submitting an application, it’s vital that you carry out the necessary planning and preparation first. All too often a lack of clarity and sufficient insight has lead to applications being rejected, especially when it comes to presenting a business case for funding. However, it doesn’t need to be that way for you. If you’re considering applying for business finance, you can improve your chances of gaining the support you need by understanding how to write a business case for funding.
The hallmarks that define a successful business case for funding will always be planning and preparation. Objective-wise, your goal is to outline why your business needs financing and what the desired outcome will look like. But you also need to portray your business in the most positive light possible, highlighting strengths whilst at the same time clarifying the risks involved. As such, before writing a business case for funding, you must be certain about:
- Why you’re applying for business finance
- How you can achieve your goals
- The benefits and risks involved
- How much capital is required
How to write a Business Case for Funding
With business cases playing a vital role in determining whether or not your application is approved, the idea of writing a one can be intimidating. But, on closer analysis, so long as you’re prepared and are asking yourself the right questions, it doesn’t need to be. You just to need to explain your reasoning for wanting to take a certain action regarding your business and why finance is the most appropriate way forward.
For example, if you’re wondering how to write a business case for training funding, your approach might be to outline what skills you’re looking to instil in your employee(s), the cost of the course(s) and the benefits to your business. All in all, it should address why this action is worth carrying out.
Besides, there no particular format for how a business case must be presented. So if you’re feeling adventurous, you can choose to submit a slide show or multimedia presentation. That being said, for the sake of simplicity, most applicants usually present their case as a PDF or printed document. So as long as it addresses all of the key points in detail and meets the lender’s criteria, it’s entirely up to you. Yet nevertheless, if you’re to make a positive impression, some of the elements that your business case should incorporate are:
Simply put, the justification aspect of your case merely describes your reasoning for deciding to take a certain action. So were you hoping to write a business case for training funding, your justification might be the need for additional skillsets so that you can appoint employees into senior positions or improve the quality of your goods and/or services. As such, it doesn’t need to be complicated, you just need to get the point.
Next, you’re simply outlining what possible options are available that could enable to achieve your goal(s) or the solutions that you’ve considered and the approach that’s been agreed. For example, in regards to training, the solution might be to pay for employees to attend evening classes or university courses.
Now you need to outline the advantages of fulfilling your goal(s), which, again, for training, might involve more skillsets, higher productivity, greater capacity for research and development, the ability to introduce new goods and/or services as well as the potential to generate more revenue.
As well as conveying the advantages, you also need to be realistic and upfront about the risks too. This will show lenders that you have thought about the drawbacks and are making preparations to tackle them should they ever arise. So, if you’re looking support training opportunities, the disadvantages and risks to your business might include the length of the course, the complexity and the potential for the employee to take their new found expertise elsewhere.
The amount of capital required:
In addition, before approving your request, lenders will always want to know the total amount of capital your business requires to support and fulfil the aim(s) of the project. So, for example, if you’re intent on providing employee(s) with the opportunity to further their expertise, the capital required would be equal to the total cost of the course(s).
Thinking about applying for business finance?
Despite capital being the life-blood of every UK business, acquiring it isn't always easy. This can present a major obstacle in your ability to support growth, meet financial obligations and maintain a tangible presence in the market. But that’s where applying for business finance could help, providing you’re able to present lenders with a clear and concise business case. Fortunately, that’s where speaking with a qualified business finance profession could prove invaluable.
At Rangewell, we’ve comprehensively mapped over 400 lenders to offer you a complete overview of more than 23,000 business finance products. We help every sector and every type of business access every type of finance - from funding for architects to funding for a social enterprise and everything in between. Plus, as well as guiding you through the application process, our services are free to use. So if you’re considering business finance in order to achieve your goals, apply for Alternative Business Finance today or find out more with Rangewell.