| Course | BUSI 4002 Small Business Ventures |
|---|---|
| Week | Week 9 |
| Paper type | Funding section |
| Length | About 800 words, 5 pages |
| Format | APA 7 student paper |
| School | Walden University |
| Program | BS in Business Administration |
| Updated | October 2026 |
Free sample paper for BUSI 4002 Week 9
Funding Keen Edge: $63,800 to Open and Reach Steady Operation, From $20,000 of Savings, a $35,000 Microloan and $8,800 of Equipment Financing, With the Cost of Each Source in Payments, Interest and Risk
Student Name
Walden University
BUSI 4002: Small Business Ventures
Instructor Name
Month Day, Year
Funding Keen Edge: $63,800 to Open and Reach Steady Operation, From $20,000 of Savings, a $35,000 Microloan and $8,800 of Equipment Financing, With the Cost of Each Source in Payments, Interest and Risk
The Requirement
The composite sharpening venture studied this term needs $63,800 to open and reach steady operation. That figure combines the startup outlays from the cost estimate, the reserve for slow months and two items added after the risk register.
Table 1
Use of Funds
| Use | Amount | |
|---|---|
| Used cargo van | $26,000 | |
| Van buildout | $4,500 | |
| Sharpening equipment | $13,800 | |
| Portable backup sharpening kit | $600 | |
| Vehicle wrap, filing, first insurance quarter, software and first supplies | $6,600 | |
| Operating reserve, three months | $12,300 | |
| Total requirement | $63,800 | |
Keen Edge and its figures are composite.
Proposed Sources
Table 2
Sources of Funds and Their Cost
| Source | Amount | Terms assumed | Monthly payment | Total cost beyond principal | |
|---|---|---|---|---|
| Founder's savings | $20,000 | Equity; no repayment | None | Founder bears first losses | |
| Microloan through a community lender | $35,000 | 10 percent, six years | About $648 | About $11,700 in interest | |
| Equipment financing on the grinders | $8,800 | 12 percent, three years | About $292 | About $1,700 in interest | |
| Total | $63,800 | Mixed | About $940 | About $13,400 | |
Loan terms are assumptions for planning and will be replaced by actual offers.
Why This Mix
The founder's savings cover about a third of the need. That share matters because lenders to small businesses want to see the owner's own money at risk, and because equity, unlike a loan, does not have to be repaid in a slow month. The cost of equity here is not a payment but exposure: if the venture fails, the founder loses the savings first.
The microloan covers the van and most of the setup. A federal microloan program (U.S. Small Business Administration, n.d.) works through nonprofit community lenders, for loans of up to $50,000 to small businesses, with repayment terms of up to six years; the 10 percent rate used here is an assumption within the range such lenders typically charge. A microloan suits this venture because the amount is small for a bank and the lenders often pair loans with business advice.
Equipment financing covers the grinders, secured by the equipment itself. Its rate is higher, but it keeps the microloan smaller and leaves the founder's savings for the reserve.
No investor equity is proposed. Sharing ownership of a one-person service business would cost more over time than the interest on these loans, and the venture's likely returns are modest and steady rather than the large returns outside investors seek. Robb and Robinson (2014) found that new firms rely far more on owner equity and bank debt than on outside equity, which matches this plan. Cassar (2004) found that larger start-ups with more tangible assets used more debt, and the van and grinders are exactly the kind of assets lenders accept as security.
What the Financing Does to the Monthly Picture
Loan payments add about $940 a month to the $4,105 of operating costs in the cost estimate, plus about $35 a month for the disability coverage the risk register added, for about $5,080 a month in total. Over the first year that is about $61,000. Against expected first-year sales of $106,800, the business covers its costs, payments included, with about $45,800 left before depreciation and the founder's self-employment taxes. If the salon estimate fails and revenue falls to about $97,000, the margin narrows but stays positive.
The financing also creates obligations. The microloan and the equipment loan will both require a personal guarantee from the founder, so the business's debts are, in practice, personal debts. And the payments do not stop in winter, when landscaping work does, which is one more reason the three-month reserve is part of the requirement rather than an extra.
What the Lenders Will Want to See
A community lender will ask for the plan, the founder's credit history, a personal financial statement and evidence that the founder can run the business. The pilot is the strongest item on that list: ten restaurants already paying is better evidence than any projection. The lender will also want to see the reserve, since it shows the founder has planned for slow months rather than counting on the loan to cover them. The equipment lender will want quotes for the grinders and will hold a lien on them until the loan is repaid, which means they cannot be sold without the lender's consent.
Alternatives Considered
Leasing a newer van would lower the upfront need by about $20,000 but add a payment of around $550 a month for five years. Buying used equipment would save perhaps $4,000 but give up warranties on machines the whole business depends on. Both were rejected for now, but leasing becomes attractive if the microloan comes in smaller than requested.
References
Cassar, G. (2004). The financing of business start-ups. Journal of Business Venturing, 19(2), 261-283. https://doi.org/10.1016/S0883-9026(03)00029-6
Robb, A. M., & Robinson, D. T. (2014). The capital structure decisions of new firms. Review of Financial Studies, 27(1), 153-179. https://doi.org/10.1093/rfs/hhs072
U.S. Small Business Administration. (n.d.). Microloans. https://www.sba.gov/funding-programs/loans/microloans
What the BUSI 4002 Week 9 instructions ask for
The ninth week asks for the funding section of your plan. State one total requirement and break it into what it covers, using your cost estimate and reserve. Name the sources you assume, such as owner savings, loans, equipment financing or investors, with amounts that add to the total. For each source, state its cost: interest and payments for debt, ownership or control for equity, risk for the founder's own money. Explain why this mix suits the venture. Show what the financing does to monthly costs and first-year results. Note obligations such as personal guarantees, and alternatives you considered. Two to four pages with a use-of-funds table and a sources table is typical, with readings on start-up financing.
Inside the BUSI 4002 Week 9 example
The section opens with the $63,800 total and a use-of-funds table from the van to the reserve. A sources table lists savings, a microloan at an assumed 10 percent over six years and equipment financing at 12 percent over three years, with monthly payments and total interest. A section explains the mix: savings show commitment, the microloan suits a small amount, citing the SBA program, and equipment financing is secured by the grinders. It explains why no outside equity is sought, citing Robb and Robinson and Cassar. A monthly section adds about $940 of payments and $35 of insurance to operating costs and computes first-year results. A section on lender expectations and one on alternatives such as leasing close it.
BUSI 4002 Week 9 rubric: what earns full marks
Funding sections are graded on clarity and completeness. One total requirement should appear, matching the cost estimate and reserve, with a use-of-funds breakdown. Sources must add up to the total, and each should be costed, with debt shown as payments and interest and equity shown as ownership or risk. The reasoning for the mix should fit the venture's size and assets. Graders reward a section that carries financing into the monthly and first-year picture, since payments change break-even. Obligations such as personal guarantees should be stated plainly. Considering alternatives shows judgment. Readings should support the choice of sources, and loan terms that are assumptions should be labeled as such until real offers arrive.
BUSI 4002 Week 9 help from the desk
Take your startup and reserve totals from the cost estimate and add anything your risk register added. That is your requirement. List realistic sources and amounts, starting with your own money. For each loan, estimate the rate and term and compute the monthly payment. For any equity, state what share of ownership you would give up. Add payments to monthly costs and recheck your first-year numbers. Note guarantees and other obligations. Weak funding sections list sources that do not add up, ignore interest, or ask for investors a small service business is unlikely to attract. Others forget the reserve. If you would like a model funding section for your venture, share your cost totals and the sources available to you.
Get a BUSI 4002 Week 9 example written to your instructions
With the Week 9 prompt and rubric in hand the desk drafts the funding section, use of funds table included, back inside 24 to 48 hours and free on a first request. Loan terms can be written to current published rates or to figures your instructor supplied. Ownership splits are modeled rather than assumed.
More BUSI 4002 papers and BS in Business Administration samples
- BUSI 4002 Week 1: Small Business Survival Post
- BUSI 4002 Week 2: Venture Idea Opportunity Screen
- BUSI 4002 Week 3: Venture Concept Statement
- BUSI 4002 Week 4: Make-or-Break Feasibility Test
- BUSI 4002 Week 5: Disconfirming Evidence Peer Replies
- BUSI 4002 Week 6: Business Plan Market Section
- BUSI 4002 Week 7: First-Year Startup Cost Estimate
- BUSI 4002 Week 8: Venture Risk Register
- BUSI 4002 Week 10: One-Page Pitch Summary
- BUSI 4002 Week 11: Complete Venture Report
- BUSI 3016 Week 9: Equipment Capital Request
- BUSI 3014 Week 9: Dashboard Read for a Decision
- BUSI 3010 Week 9: Shop Floor Layout Proposal
BUSI 4002 Week 9 questions, answered
Where can I find a free BUSI 4002 Week 9 sample paper?
Read the full funding section, with its use-of-funds and sources tables, below on this page at no charge.
How much does the BUSI 4002 Week 9 venture need?
$63,800, covering the van, buildout, equipment, setup costs, a backup kit and a three-month reserve.
Where will the money come from?
$20,000 of the founder's savings, a $35,000 community microloan and $8,800 of equipment financing.
What do the loans cost?
About $940 a month in payments and roughly $13,400 in interest over their terms, using assumed rates.
Why not seek investors?
Sharing ownership of a modest one-person service business would cost more over time than the loans' interest.