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Funding Requirement and Source of Funds

The owners of the business estimated an initial capital requirement of P121,000 to cover start-up costs including rent, fixtures, equipment, utilities, registration, and employee salaries. Each partner will contribute P11,000 of the total from personal investments, with the remaining funds to come from bank loans and creditors to be secured within six months, requiring additional investment.

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Cess Abad Agcong
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521 views1 page

Funding Requirement and Source of Funds

The owners of the business estimated an initial capital requirement of P121,000 to cover start-up costs including rent, fixtures, equipment, utilities, registration, and employee salaries. Each partner will contribute P11,000 of the total from personal investments, with the remaining funds to come from bank loans and creditors to be secured within six months, requiring additional investment.

Uploaded by

Cess Abad Agcong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Funding Requirement and Source of Funds

With thorough discussion in terms of financial management, the owners of the


business has estimated an initial capital of P121, 000. The individual contribution of
partners will be P11, 000 each, enough to cover the initial cost of business. The sources
of business funds can be from its internal sources which is the personal investment or
share of the owners, and external sources like bank loans, from creditors and venture
capital. The estimated period to settle the funding sources provided by creditors and
institution is six months. Therefore, the business will have an additional investment.

The table below shows the allocation of total cost.

Funding Requirement
Rent P25, 000
Fixtures & Furniture P20, 000
Equipment P25, 000
Utilities and Business Registration P15, 000
Employees’ Initial Salary P36, 000

Initial Total of Capital: P121, 000

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