Financing Plan Course

Lesson 1 • Overview of Financing Sources

Surveys the main categories of financing: debt, equity, and hybrid instruments. Provides a reference map for deeper study in later chapters.

Lesson 2 • The Financing Plan Document

Describes the standard structure and purpose of a written financing plan. Students recognize what a complete, professional document contains.

Lesson 3 • Stakeholders and Decision Makers

Maps the internal and external parties involved in financing decisions. Clarifies how each stakeholder influences plan design and approval.

Lesson 4 • What Is a Financing Plan

Defines a financing plan and distinguishes it from a budget or business plan. Establishes the vocabulary used throughout the course.

Lesson 1 • Identifying Funding Gaps from Statements

Teaches how to spot cash shortfalls and capital deficits in historical statements. Bridges financial analysis to the need for a structured financing plan.

Lesson 2 • Key Financial Ratios for Financing

Introduces leverage, coverage, and liquidity ratios used by lenders and investors. Students apply ratios to evaluate a company's financing eligibility.

Lesson 3 • Cash Flow Statement Essentials

Distinguishes operating, investing, and financing cash flows. Demonstrates why cash flow, not profit, drives financing plan feasibility.

Lesson 4 • Analyzing the Income Statement

Covers revenue, cost, and profit line items relevant to financing decisions. Links profitability metrics to debt service and investor return expectations.

Lesson 1 • Debt Structuring and Repayment Schedules

Teaches amortization profiles, bullet repayments, and grace periods. Students design repayment schedules aligned with projected cash flows.

Lesson 2 • Bank Loans and Credit Facilities

Covers term loans, revolving credit, and overdraft facilities as primary debt tools. Explains how each product matches different liquidity and investment needs.

Lesson 3 • Bonds and Debt Securities

Explains corporate bonds, notes, and private placements as capital market debt. Connects issuance conditions to company size and credit profile.

Lesson 4 • Asset-Based and Secured Financing

Covers financing backed by receivables, inventory, and fixed assets. Demonstrates how asset quality determines borrowing capacity.

Lesson 1 • Equity Financing Fundamentals

Defines common and preferred equity and their rights in a capital structure. Establishes the trade-off between control and capital access.

Lesson 2 • Private Equity and Venture Capital

Covers how private investors provide growth and buyout capital. Explains investment thesis, return expectations, and exit mechanisms.

Lesson 3 • Hybrid Instruments: Mezzanine and Convertibles

Explains mezzanine debt, convertible notes, and warrants as instruments bridging debt and equity. Analyzes when hybrid financing reduces overall capital cost.

Lesson 4 • Choosing Between Debt and Equity

Applies cost of capital and control criteria to the debt-equity choice. Integrates prior chapters into a structured decision framework.

Lesson 1 • Optimizing Structure Across Business Stages

Shows how the optimal capital structure evolves from startup to maturity. Aligns financing mix with growth phase and risk tolerance.

Lesson 2 • Weighted Average Cost of Capital

Teaches WACC calculation and its use as a hurdle rate and valuation input. Connects capital structure choices to the firm's overall cost of financing.

Lesson 3 • Capital Structure Theory Essentials

Introduces trade-off theory, pecking order, and market timing perspectives. Provides the theoretical basis for capital structure decisions in practice.

Lesson 4 • Leverage Ratios and Target Ranges

Defines industry-standard leverage benchmarks and how to set target ranges. Students calibrate leverage to cash flow stability and asset base.

Lesson 1 • Revenue and Cost Forecasting

Covers top-down and bottom-up forecasting methods for revenue and operating costs. Establishes the projection base that drives all downstream financing calculations.

Lesson 2 • Capital Expenditure and Working Capital Planning

Quantifies investment in fixed assets and working capital as key funding drivers. Connects capex and working capital cycles to cash need timing.

Lesson 3 • Building the Three-Statement Model

Integrates income statement, balance sheet, and cash flow projections into one model. Ensures internal consistency across all financial statements.

Lesson 4 • Scenario and Sensitivity Analysis

Tests how changes in key assumptions affect the funding requirement. Produces a range of financing needs for base, upside, and downside cases.

Lesson 1 • Presenting to Lenders and Investors

Prepares students to deliver and defend the financing plan in formal meetings. Covers Q&A preparation, objection handling, and follow-up process.

Lesson 2 • Term Sheet and Key Financing Terms

Explains the components of a term sheet and how terms affect plan economics. Students evaluate and negotiate key financial and protective provisions.

Lesson 3 • Defining the Financing Strategy

Translates funding needs and capital structure targets into a clear financing strategy. Aligns instrument selection with business objectives and stakeholder expectations.

Lesson 4 • Sources and Uses of Funds Table

Builds the sources-and-uses table as the central summary of the financing plan. Ensures every funding source is matched to a specific use of capital.

Lesson 1 • Financial Covenant Monitoring

Establishes a process for tracking covenant ratios against contractual thresholds. Prevents technical default through early warning and proactive lender communication.

Lesson 2 • Cash Flow Variance Analysis

Compares actual cash flows to projections to identify plan deviations. Links variance root causes to specific financing plan adjustments.

Lesson 3 • Reporting to Stakeholders Post-Closing

Defines ongoing reporting obligations to lenders, investors, and boards. Builds credibility through transparent, timely, and accurate financial communication.

Lesson 4 • Revising the Financing Plan

Teaches a structured process for updating the financing plan when conditions change. Ensures the revised plan remains internally consistent and stakeholder-approved.