Success in projecting financial assets is the key to securing funding

A company looking for can not afford to underestimate the importance of screenings financial assets. A business is easy to plan your financial income and income targets for the creditor. This information is important because it reimburse an important indicator of the ability to obtain a loan. If you have any doubts about the financial projections and how it affects your business, it is preferable to someone who does not know the rent. Most lenders want to see three or five years of projection. There are 14 different elements in your financial projections and fully supported. With these various elements, it is preferable to one-month breakdown for months for the first year, the quarterly distribution for the next two years and an annual breakdown for the last two years you are projecting. The various elements in the projected sales estimates of administrative costs, production costs, distribution costs, capital expenditures, the gross margin by product line, sales by product line, interest on debt, income, plan to collect receivables, payables and the attachment, the turnover of inventory, depreciation schedules and benefits or depreciation of assets. Projected revenue for the owner / manager to develop a forecast of the revenue generated each month for the fiscal year, based on the forecasts of the tolerable level of monthly sales, costs and expenses. To determine total net sales, you know how many units of products and services you expect at prices you plan to sell. Be careful, what about the quotas, and planned reductions. Distribution costs are for all products and services will be charged. Make sure that in determining the costs of sale you forget something like the Commission to provide commercial transportation, or other direct remuneration. The gross margin by subtracting the total cost of all sales. To obtain the gross margin is the gross profit share of total net sales. This is expressed as a percentage of total sales or revenues. In preparing the financial projections for your business, there are five points that the accuracy of your projections fall and hurt the chances of approval of corporate finance. The first is wishful thinking or too optimistic about the sales potential. Ask yourself: "E 'can achieve the levels of sales forecasts?".