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Funding Proposal Template

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  • 1. Sign up for a free Indy account
  • 2. Launch Indy’s Proposals tool
  • 3. Edit your proposal template

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Funding Proposal Template
FROM
Sender's Name
Sender's Address
Sender's Company
TO
Client's Name
Client's Address
Client's Company

Dear,

Thank you for granting me the opportunity to submit my funding proposal to you. As I shared in our recent conversation, I will use this proposal to discuss how the funding amount of $280,000 from your company can help me achieve my business goals.

In my proposal, I will provide a detailed overview of the following:

  • Why my business is a great funding choice
  • Plans to provide business updates following funding
  • Specific funding needs
  • Deadlines and deliverables
  • Proposed terms of payment

After reviewing this funding proposal, please reach out to me with any questions or concerns. I will be happy to speak with you over the phone to offer clarity or provide more extensive details regarding my proposal.


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Funding Proposal Template FAQ

What Is a Funding Proposal Template?

There are many reasons you may need to raise a fund. You may need to raise fund for your business or to market your products. It may be that you need to raise money for a charitable cause. In any of these situations, you have got to make a request from other people for you to raise the money. As a businessman, you need to know that a funding proposal is not descriptive; rather, it is persuasive. There is a very high probability that you are not the only one pitching for the round of funding, so you must be able to persuade the investor(s) that your project is not just the most viable; but also, exceptional.

Usually, most companies who raise fund do so from more than one source. And every investor looks out to see a relationship between their interests and that of the business that requires the fund. For your funding proposal to have a chance of winning the fund, you will have to consider there are other competitors and the funder would have a lot of proposals to read, so you need to be very brief and provide only the required details.  You must present the problem that your business solves in a manner that is coherent, concise, and current, and urgent. 

What will determine how fast or far you will go in raising money for your business from investors is how well you are able to persuade investors to grant you funding. Thus, it is very important for you to know how to write a funding-proposal Your funders don't just want to see if you really need the funds; they also want to see if you are credible enough to use the funds judiciously. You must bring as much of your financial statements as you can get with the proposal. Investors don't just want to give money out; they want to give money to credible people, and not just credible people, but people who know how to manage projects in a way that will bring their investment back into their pockets. You might have several teams working on different proposals at the same time, but to ensure that each team working on a particular proposal has an overall idea of your proposal, there is a need to create a simple template and get them working to achieve the same goal.   

How do you write a funding proposal template?

A good funding proposal should display the necessary information that a potential funder or investor will be willing to pay. Not just that, it should be convincing. Here are things you can do

 Outline Your Project

The first thing you should do when writing a funding proposal template is to create an outline. The outline of the proposal will provide all the details that will be included in the proposal at a glance.

Provide a Background Information about your company

You will need to arrange your data and provide detailed information about your company. First, indicate how long you have been in existence, the services you offer or the products you sell. You can list your previous targets and how managed to achieve them. Also, include other things that you think your funders need to know about your company. 

List your Resources

List all the resources that you will need to complete the project. Include the resources you already have and the ones that need funding. Here you can list your assets (which include your staff, your fixed assets and your moveable assets). As well, make your funder know the number of people involved in the project, the qualifications they have that make them appropriate to execute the new project and their roles in the whole process.

Create a Budget

Budget is a crucial part of your funding proposals. Evaluating the proposal becomes easy when a budget is planned. It gives you a basic idea of what the income and expenses would be for the project throughout. If the project has been running for years, it means that there will be many miscellaneous. Your budget can be revised whenever there are unexpected expenses or income in the project proposal.

Signatures

Once you are done drafting the proposal, recheck it to see if you have entered all the details properly. Even the minute details should not be left. Give this to all your potential investors and clients so that they also have a chance to know what the project is all about. You can still make the necessary changes before sending it out. Since signatures are very important for the proposal to be legal, get them signed by all the parties involved in the project.

What should be in a funding proposal template?

Now that you are conscious about how to write successful funding proposal template, the following entails the essential parts

Provide an executive summary

You need a summary of your business that catches the eye and presents your business in a way that your prospective funders will choose you over your competition.

State the problem that you are solving

This ensures that the investors see the problem as one that they must invest in immediately and which will bring very good returns for them.

Propose a Solution                                                         

If funders don't see the solution that your business brings out and how they can gain from it, they will likely not be interested.

Make Your Budget Obvious

This is the most important part of your proposal. It must contain the resources you already have, the number of funds you need and a detailed breakdown of what you need the funds for.

Your Team

So, if you are writing a funding proposal, the template ensures that you leave a space for the name and profiles of everybody who will be part of the project and the roles that they will be expected to play in it.

Your Exit Strategy

You need propose how you aim help the investors recoup their money. What are the projections that you have for returns on investment? At what stage do you plan to exit the market? Much more than your own need for funds, the investor wants to see what they will gain from your business/project.

Funding Proposal Template
FROM
Sender's Name
Sender's Address
Sender's Company
TO
Client's Name
Client's Address
Client's Company

Introduction

Say hello to your potential client. This is a great space to mention how you engaged with the client, what you understand about their plans, and any other information you know about this project. The main goal of your proposal is to make a connection with the client about your funding services.

Dear {CLIENT NAME},

Thank you for granting me the opportunity to submit my funding proposal to you. As I shared in our recent conversation, I will use this proposal to discuss how the funding amount of $280,000 from {CLIENT COMPANY NAME} can help me achieve my business goals.

In my proposal, I will provide a detailed overview of the following:

  • Why my business is a great funding choice
  • Plans to provide business updates following funding
  • Specific funding needs
  • Deadlines and deliverables
  • Proposed terms of payment

After reviewing this funding proposal, please reach out to me with any questions or concerns. I will be happy to speak with you over the phone to offer clarity or provide more extensive details regarding my proposal.

Best,

{YOUR NAME}

Why {YOUR NAME} for business services?

Every business needs to show off sometimes. Use this space in your proposal to talk about your past work and competitive advantages. You could include pictures, links, and customer quotes to build up some proof about your skills.

My business has experienced profit growth of more than 50% over the past year. With funding from {CLIENT COMPANY NAME}, I can accommodate my expanding customer base while improving and expanding my services. I project that making these necessary adjustments will result in an additional 25% increase in profits over the next year.

My clientele is extremely pleased with my business operations in their current state. Funding will help me make further improvements. Please review these testimonials from my clients:

  • {YOUR NAME} is fantastic to work with. I regularly place orders and have never had to worry about delays in shipping or defective products upon arrival. Over the past year, {YOUR NAME} has become my number one source for the best products on the market. –James, President of client’s business
  • {YOUR NAME} is unparalleled when it comes to professionalism and timely product delivery. Any products that have arrived in less than stellar condition have always been immediately replaced. I always recommend {YOUR NAME} to prospective customers. –Rebecca, Director of client’s business.

I am proud to say that my clients value my consistent results, professionalism, and steadfast commitment to deadlines.

Project description

You introduced yourself to the client. Now, it’s time to show them you understand what they need and can deliver it for them. Write a paragraph or two in your proposal about the funding services they need and how you can deliver them.

I understand that as a company funding a relatively new business, you will want to feel confident that you are making the right investment. I have included with this funding proposal an updated business plan that outlines my original objectives, important milestones achieved, and changes I have made and plan to make to continuously improve my business model. I have also included my gross profits for my first two years of business and profit projections for the next five years. You will also receive my financial proposal, which details how {CLIENT COMPANY NAME} can profit from funding my company’s ventures.

Objectives

In this section, you can be even more specific about your funding services. Your proposal can include specific targets to be met, software and equipment to be used, and reporting structure can be included. Cost and deadlines will be covered later.

I have already received 60% of my total funding needs from several investors. Receiving the additional 40% totaling $280,000 from {CLIENT COMPANY NAME} will help me achieve my remaining objectives for the next year. I will break down these objectives.

  • Personnel: I plan to hire 1 full-time employee and one part-time employee. Our part-time employee will handle our IT needs, and our full-time employee will be responsible for all office duties. Costs for these employees are expected to total $88,000 in the first year, including payroll tax and insurance coverage costs. 
  • Inventory: With my company’s orders doubling over the last year, I will need funds to increase inventory, including shipping supplies, machinery parts, and tools for repair. Inventory currently accounts for $75,000 of my annual budget.
  • Location: Funding from {CLIENT COMPANY NAME} will help my business relocate to a larger facility that can accommodate growing staff, increased inventory, and better performing machinery. Estimated down payment and monthly rental costs for the first year total $100,000.
  • Hardware/software upgrades: My business operates using an order fulfillment system that requires the latest computer hardware and software. I expect costs for upkeep of this fulfillment system to reach $5,000 annually.
  • Marketing costs: I plan to expand my marketing outreach to include PPC and social media campaigns. I estimate that marketing costs for the year will reach $12,000.

In my regular reports, I will inform you on the evolution of my business and impact of your funding. If you have questions along the way, feel free to call me or send an email to {YOUR EMAIL}.

Deadline and deliverables

You should commit yourself to reasonable deadlines. Be sure to allow plenty of time for the funding work to be completed. Specific delivery formats can be highlighted in the proposal if this is relevant to the project.

Per our conversation, I am committed to ensuring that funds provided by {CLIENT COMPANY NAME} have been properly invested and that I am held accountable for presenting you with regular updates on my company’s growth.

Each month, starting 30 days from receipt of funding from {CLIENT COMPANY NAME}, I will begin to provide a summary update of the following:

  • Key personnel changes
  • Notable and pending business milestones
  • Runway and burn rate
  • Top line revenue
  • Gross profits
  • Company direction changes
  • Target market adjustments

I will meet my proposed update deadlines to ensure you feel confident that you have invested in a profitable business that promises year-over-year growth for the foreseeable future.

Payment terms

Structuring your payments is important for your cash flow and the client’s clarity. List specific payments and dates in your proposal to avoid any confusion. You should also include details about any extra work or extra charges for your funding services.

Projects such as this one run for several months before they finish. To facilitate these projects, I offer a schedule of payments. Here are the payment milestones:

  • 25% initial payment due upon signing the contract and before any work begins. 
  • A further 25% of the total will be invoiced once the final audit and action plan has been approved.
  • The next 25% of the total will be due once the final page has been optimized.
  • Payment of the remaining 25% will be due once the final weekly report is made to signal the end of the contract.

Upon receipt of the final issuance of requested funding, I will send confirmation that your portion of our financial contract is complete. In the financial proposal I plan to present to you, I will outline three options to consider for my repayment of the funding issued by {CLIENT COMPANY NAME}. Once we agree on the financial terms, I will repay according to those terms and in a timely fashion until repayment is complete.

Agreement

Once you agree to this proposal, I will prepare a simple contract for funding. The contract will reference the terms of this proposal, including any amendments you suggest. If you agree to these terms, please sign below, and return this proposal to me.


Thank you very much. I look forward to working with {CLIENT NAME}.


Signed _____________________________________________________________

{CLIENT NAME}

Date: ______/______/____________

The Independent Worker

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