1. BSBSMB406A Manage Small Business Finance
Sources of Finance
Implement and Monitor Financial Performance
1.6 Select key performance indicators to enable ongoing monitoring of financial performance
Chap 3 page 80
Third Edition 2016 Chapter 7 Page 159

2. Main sources of Finance
Suppliers Credit
Trade Contractors Credit
Client Deposit
BSBSMB406A Manage Small Busines Finance - Wk 13 - PC Monitor Financial Performance

3. No interest paid to banks Profit distribution
Equity Finance
Proprietors own funds
Private investors
Benefits :-
No interest paid to banks
Profit distribution
BSBSMB406A Manage Small Busines Finance - Wk 13 - PC Monitor Financial Performance

4. Debt Finance Bank Loan Is a debt until repaid Includes Interest
The Interest rate may be dependant on :-
your loan record
Current financial situation
BSBSMB406A Manage Small Busines Finance - Wk 13 - PC Monitor Financial Performance

5. It is a common form of Finance.
Business Overdraft
It is a common form of Finance.
Interest charged only on the balance borrowed
All Interest is Tax deductable
Since it is a Taxable Profit REDUCER
BSBSMB406A Manage Small Busines Finance - Wk 13 - PC Monitor Financial Performance

6. Need money to purchase next development property
Bridging Loan
Short term loan
Need money to purchase next development property
Before sale finalised on current development.
BSBSMB406A Manage Small Busines Finance - Wk 13 - PC Monitor Financial Performance

7. Variable or Fixed interest Short or Long term
Term Loan
Short term
Tailored to your needs
Variable or Fixed interest
Short or Long term
Security in land or buildings generally required
BSBSMB406A Manage Small Busines Finance - Wk 13 - PC Monitor Financial Performance

8. Equipment Finance – Equipment Leasing
May be provided by the Vendor / Manufacturer ( Ford Finance )
Discount on purchase price if this finance selected
Interest is Tax deductable
BSBSMB406A Manage Small Busines Finance - Wk 13 - PC Monitor Financial Performance

9. Lender required information
Purpose of Loan and Amount
Security available for the Loan
Existing Debt, Loans
Previous Debts, Loans
BSBSMB406A Manage Small Busines Finance - Wk 13 - PC Monitor Financial Performance

10. Lender required information
Business Plan
Last 2 years Financials
12 months cash flow budgets
Taxation Returns and assessments
Current Financials showing Debtors & Creditors
BSBSMB406A Manage Small Busines Finance - Wk 13 - PC Monitor Financial Performance

11. Performance Indicators
Project Forecast Profit
Company Forecast Profit
Site Overheads
Company Overheads
BSBSMB406A Manage Small Busines Finance - Wk 13 - PC Monitor Financial Performance

12. Project Forecast Profit
The Project budget is affected by the Construction Budget
Site Management’s task is to stay within the Construction Budget
If they exceed the Construction Budget the Project Profit will be Eroded
Every Sub Contract and purchase MUST be within Budget
BSBSMB406A Manage Small Busines Finance - Wk 13 - PC Monitor Financial Performance

13. Company Forecast Profit
BSBSMB406A Manage Small Busines Finance - Wk 13 - PC Monitor Financial Performance