Lesson 1 of 3
6 minUse of funds
What it is
Use of funds describes where capital is intended to go and how it supports the business objective.
Why it matters
A detailed use creates accountability and makes the request easier to evaluate.
Simple example
Separate $80,000 equipment, $45,000 inventory, and $25,000 launch costs rather than listing $150,000 for expansion.
What may be reviewed
- Vendor estimates
- Project phases
- Working capital needs
- Timing
Common mistakes
- Using broad categories
- Omitting implementation timing
Your next step
Create a line-item use-of-funds schedule tied to measurable business outcomes.