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Money · Guided lesson

Match a business funding need to its use

About 11 minutes · 3 reading + 8 practice and checks
Time includes reading, practice, and questions. Extra videos or further study are optional.
See this course’s project requirements

A fictional funding request with verified uses, owner contribution, cash capacity, loan-term comparison, collateral questions and a go/no-go recommendation.

Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.

What to include

  • A funding-use table and source/term verification questions.
  • A balanced or gap-flagged sources-and-uses schedule.
  • A repayment-capacity worksheet with numerator definition and downside gap.
  • A business-loan term/proceeds/cost scorecard.
  • A collateral/guarantee question map for qualified review.
  • A completed fictional small-business loan-readiness packet.

Review and revise

Use these criteria to check your work and choose what to improve.

  • All supplied records reconcile and the decision uses the named case rules.
  • Calculations show units, intermediate values and a second check.
  • Changed-input practice revises the affected result and identifies uncertainty.
  • The final project combines six lesson records, separates fictional assumptions from current rules, and states a supported next step.
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Before you begin

The idea in everyday life

This is an original fictional practice case. No account, payment, personal record or outside participation is required. Fictional request: equipment $6,000 used for 3 years; inventory $2,000 expected to sell in 2 months; setup fees $1,000. No sales success or loan eligibility is guaranteed.

The idea

Funding type and repayment horizon should match the use; inventory timing, durable equipment and owner equity are different financing questions.

Follow along

Match a business funding need to its use — worked practice

Funding type and repayment horizon should match the use; inventory timing, durable equipment and owner equity are different financing questions.

Use paper or a local table; label all amounts as fictional USD unless the case names another unit. Fictional request: equipment $6,000 used for 3 years; inventory $2,000 expected to sell in 2 months; setup fees $1,000. No sales success or loan eligibility is guaranteed.

Funding uses and horizons

Paste at A1.

AUseBUSDCSupplied use horizon
Equipment6000Three years
Inventory2000Expected two-month sale cycle
Setup fees1000At setup

Copy as plain text
  1. 1. Step 1: List each use with amount and useful/cash cycle

    List each use with amount and useful/cash cycle.

    You should see: $6,000 equipment, $2,000 inventory, $1,000 fees.

    Funding type and repayment horizon should match the use; inventory timing, durable equipment and owner equity are different financing questions.

  2. 2. Step 2: Add complete funding uses

    Add complete funding uses.

    You should see: $9,000.

    Keep this intermediate result so the final decision can be checked.

  3. 3. Step 3: Separate long-lived and short-cycle needs

    Separate long-lived and short-cycle needs.

    You should see: Equipment lasts 3 years; inventory has an assumed 2-month cycle.

    Keep this intermediate result so the final decision can be checked.

  4. 4. Step 4: Write terms-to-verify questions

    Write terms-to-verify questions.

    You should see: Amount, repayment schedule, use restrictions and realistic cash generation must be checked for each candidate source.

    Keep this intermediate result so the final decision can be checked.

Now change one thing

Inventory need becomes $2,500. Total uses?

Your work

What to finish

A funding-use table and source/term verification questions.

Common mistake

Watch for this

Omitting fees or assuming inventory will sell on the planned date.

How can I tell I understand it?

Classify a business funding request by complete use and assumed cash/use horizon on the supplied changed case while preserving the stated rule and checking the final record.

Try 3 questions

Quick knowledge check

Answer all 3 questions. Get at least 2 right and the lesson completes automatically.

Not yet passed

You’ll get an explanation for each answer. Signed in? Your results save to your account.

1Equipment $4,000, inventory $1,500, fees $500: total uses?
2Why record the cash cycle of inventory?
3Does naming an SBA program establish this business’s eligibility?
0 of 3 answeredApply the lesson to a short question, then review the explanation.
1
Finish this lesson

Pass the check. We’ll save the progress.

Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.

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Tools, templates, and lesson sources

Tools and templates

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Sources and further reading

Explore the references behind this lesson.

U.S. Small Business Administration — Lender Match
Source & access notes · checked 2026-10-01

Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.

Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.

Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.

U.S. Small Business Administration — 7(a) loans
Source & access notes · checked 2026-10-01

Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.

Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.

Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.

U.S. Small Business Administration — Microloans
Source & access notes · checked 2026-10-01

Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.

Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.

Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.

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