The Financial plan summary is where you will indicate how much cash you are seeking. Then describe how these funds will be used. How much will have to be spent on computer equipment, office furniture, etc? You can break these down into “operating projections” or “capital needs” or whatever makes the most sense based on your needs and what you are seeking. 

 

You should distinguish your capital request in either of three ways: working capital financing, growth capital financing, and equity capital financing. Working capital financing is generally a short-term loan for normal business expenses to be paid back within a year through cash generated by the business. Growth capital financing is needed to finance the growth of your business, usually requiring longer-term financing, and must be paid utilizing the profits of the growth it financed. Finally, equity capital financing is obtained from investors for permanent needs and paid back through dividends, capital gains, or a share of the business.