Funding Request: The Most Concrete Section in Your Plan
How to structure a funding ask that funders can actually approve.
The Funding Request: Why Vagueness Kills Applications
The two most common mistakes in funding requests are asking for too much without justification and asking for too little without understanding the real costs. Both signal poor financial planning.
How to Size Your Request
Work backwards from your financial projections:
- List what you need to buy or fund — equipment, premises deposit, working capital, staff for the first 6 months, marketing launch budget
- Get real quotes — not estimates from memory, but actual quotes from suppliers
- Add a 15% contingency — funders expect this and it is honest to include it
- State the total
A request built this way is defensible. A request built by guessing what sounds right is not.
Use of Funds: The Format That Works
Funders expect a table or list showing:
| Category | Amount | % of Total | |----------|--------|------------| | Equipment | R250,000 | 50% | | Working Capital (6 months) | R150,000 | 30% | | Marketing Launch | R50,000 | 10% | | Contingency (15%) | R50,000 | 10% | | Total | R500,000 | 100% |
This level of detail signals that you have done the work.
Loan vs. Equity vs. Grant: Different Plans Required
Loan applicants must show a repayment plan. Your financial projections need to demonstrate that your monthly cash flow can service the debt. SEFA typically expects repayment within 5 years for business loans.
Equity applicants must show an exit or return path. Equity funders invest for a return — they need to see how and when they get it back.
Grant applicants must show impact. Grant funders (like SEDFA or government programmes) focus on job creation, transformation, and social impact rather than financial return.
Know which type you are applying for and tailor your request accordingly.
Checklist
- [ ] Total amount is justified by a real Use of Funds breakdown
- [ ] Use of Funds adds to 100% and matches the total request
- [ ] Funding type (loan/equity/grant) is explicitly stated
- [ ] Repayment plan is included for loan applications
- [ ] Financial projections show the business can service the debt