Assessing the capital needs of a new venture, comparing short-term and long-term funding options available in the finance industry, compiling personal financial statements, understanding the requirements and processes to access selected financing options, and identifying alternative sources to secure finance for a new venture are critical steps in financial planning and securing resources for a new business.

This unit standard is intended for learners who must make decisions and recommendations about financing options for a new venture. The qualifying learner will be able to determine the capital requirements of the new venture. Identify and compare all short-term and long-term funding options and services the finance industry offers for new ventures. Compile personal income and expenditure and assets and liabilities statements. Identify the requirements and processes to access the selected financing option for the new venture. Identify alternative sources to secure finance for a new venture.

Course Content

  • Funding requirements and capital structure are identified and analysed for the new venture.
  • Realistic fixed asset requirements are determined for the new venture.
  • Pre-operating costs are identified and calculated to an exact value.
  • Monthly operating costs – including a cash flow statement – are compiled for the new venture.
  • The financial viability of the proposed new venture is assessed and estimation made of the break-even point.
  • An extensive list of financial institutions offering funding for new ventures is compiled with a view to selecting the one best suited to the venture.
  • The various funding packages (products) appropriate for a new venture are investigated and compared in terms of own venture needs.
  • The cost of the various funding options is compared to determine suitability for own venture’s business structure.
  • Short-term and long-term advantages and disadvantages of the various funding options are considered and discussed in context of own business and a decision made as to the most suitable.
  • Personal income and expenditure statements are prepared for oneself based on own financial situation over the past year.
  • The situations when an assets and liabilities statement is required are listed and an indication is given of the advantages of keeping such records.
  • Collateral requirements for accessing funding are identified to determine if they can be met.
  • The new venture proposals are assessed in terms of available collateral.
  • The information and back-up documentation needed to process application for funding is collected and used to complete the application.
  • A financing option is chosen that is consistent with the business plan in terms of profit objectives and return on capital.
  • Laws, regulations, rules and procedures covering the provision and use of financial services are observed to ensure compliance.
  • The difference between debt (loans) and equity (owner’s capital) is explained with reference to the new venture.
  • Problems faced in obtaining finance for the new venture are identified with a view to overcoming them.
  • Alternative sources of equity are investigated for the new venture.
  • Government and non-governmental schemes for new venture creation are investigated and analysed and an explanation given of their advantages and disadvantages for the new venture.
  • The option of leasing as a method of reducing start-up capital is considered for your own venture.
  • The repayments and interest rates of the alternative options are considered and compared to those of the financial institutions to make informed decisions.
  • Non-accredited: Short course only  
  • Duration: 1h 30m
  • Delivery: Classroom/Online/Blended
  • Access Period: 12 Months 
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