A debt funding proposal is one that encapsulates the need for initiating the process of debt funding through sale of shares or bonds to private owners by creditors. Therefore, it must be written down cautiously by accepting the conditions to raise money from a creditor that lends the money as a loan.
Sample Debt Funding Proposal
Title of the proposal: Debt funding proposal
Name of the organization making the proposal: Jockey Real Estate Firm
Proposal presented to: WeCare Bankers
Need for debt funding proposal: We have approached your Company with the plea to expend an amount of $50,000 to fund our private entrepreneurship. We would like to inform you that we accept all the terms and conditions set by your company.
The main points of the grant are as follows:
- In context to the condition given, we promise to repay the principal amount by the fixed time, that is, 14th July, 2014
- The interest will be paid monthly on the debt that will remain fixed at 7% of the whole money borrowed by the firm.
- We promise you that we will not deviate from the stated terms.
Significant feature: Since the business is based on private ownership, the source of money depends entirely on borrowed funds next to private investments. The debt will be cleared through periodic repayments.
Fund use: The raised funds would be required in hiring sound technicians, consulting professionals, making plans and initializing projects for the real estate business.
Estimated amount to be repaid: $50,000 (principal amount) + $3500 (monthly installments)
Last date of acceptance: 14th November, 2010