Addressed to a microlender, the finished MT207 Unit 8 funding proposal requests 35,000 dollars, prices three sources against one family equity offer, and shows how repayment is covered. Searches like "mt 207 unit 8 assignment example", "mt207 unit 8 sample" and "mt207 unit 8 example" land here.
What a finished MT207 Unit 8 funding proposal looks like
Four pages opening with a one-paragraph request: the amount, the term sought, the use of funds and the owner's own contribution. A sources-and-uses table follows. The uses column repeats the startup worksheet's totals, one-time costs and the operating reserve; the sources column splits 68,000 dollars among savings, the microloan and van financing, each with its rate, term and monthly payment. A comparison paragraph then prices the road not taken: a relative's offer of 30,000 dollars for a quarter of the company, which the proposal converts into an implied valuation and a share of every future year's profit. Repayment capacity comes next, a year-two debt service coverage ratio near 1.8 computed after the owner's draw. Collateral, the personal guarantee and a short risk section close the document.
How a MT207 Unit 8 example is structured
The request comes first because a lender reads for the ask before anything else, and a proposal that builds to its amount on page three makes the reader search. Sources and uses sit side by side so the totals visibly match; a gap between them is the first thing a loan officer checks. Every source is priced in the same three terms, rate, term and monthly payment, so the cost of taking each can be compared directly. The family offer is treated as a real alternative and priced, not dismissed, because the unit asks what money costs, and equity costs a share of profit indefinitely rather than interest for six years. Coverage is computed after the owner's draw, the conservative version. A closing risk section identifies the two assumptions repayment depends on, signed accounts and the reserve, and what happens if either fails.
The ask in one paragraph
Thirty-five thousand dollars over six years, what it buys, and the 19,000 dollars the founder is putting in before any lender does.
Sources beside uses
Uses copied from the startup worksheet, sources split three ways with rate, term and payment, both columns totaling 68,000 dollars.
A quarter of the company, priced
The relative's 30,000-dollar offer converted into an implied valuation and a permanent share of profit, then set against six years of interest.
Coverage after the owner's draw
Cash available for debt service in year two divided by annual payments, near 1.8, computed the conservative way and labeled as such.
Guarantee, collateral, risks
The equipment pledged, the guarantee acknowledged plainly, and the two assumptions repayment rests on, each with a fallback.
Where marks go in MT207 Unit 8
A list of money sources with no price on any of them loses most, since the prompt asks what taking the money costs and naming possible sources answers only half of it. A sources total that fails to match the uses total, or matches only because a line was invented to close the gap, is the next deduction and the easiest for a grader to spot. Equity offers treated as free money draw losses in many sections: giving up a quarter of the company has a price, and the proposal is expected to state it. Repayment shown before the owner's draw overstates coverage and reads as naive to anyone who has read a loan file. Proposals that omit the personal guarantee lose credibility marks, and a risk section with no fallback loses smaller points.
Get a MT207 Unit 8 example written to your instructions
A funding proposal depends on earlier numbers, so include the startup cost figures, the Unit 8 prompt and the rubric, plus any sources already in view. Each option is priced by rate, term and payment or by the share it takes, and coverage is computed conservatively. Turnaround is 24-48h, with the first custom sample free.
MT207 Unit 8 questions, answered
Does the proposal have to use a real lender?
Many sections accept a composite or a named program type, such as a microloan intermediary or a bank's small business line, as long as terms are realistic and sourced. Published rate ranges and program limits give the figures a basis. The sample uses a composite nonprofit lender with terms drawn from published program ranges, and labels every rate as illustrative.
Is equity always more expensive than debt?
Not always, and the proposal does not claim it is. Equity carries no fixed payment, which protects a young business in a slow month, while debt must be repaid whatever happens. The unit rewards pricing both honestly. Here the relative's offer implied a valuation low enough that a quarter of future profit would exceed the loan's interest within a few years, and the paper shows that arithmetic.
What is debt service coverage and why does it matter here?
It is the cash a business has available to pay its loans, divided by the payments due. A ratio above one means the payments are covered; lenders usually want a cushion above that. Including it shows that the request was sized to what the venture can repay, which MT207 graders often treat as the difference between a proposal and a wish list.