The use-of-funds breakdown lenders trust
One of the fastest ways to build — or destroy — a lender's confidence is the line that says where the money goes.
Compare two versions of the same $150,000 request:
Version A: "Startup costs and working capital — $150,000."
Version B: "Equipment $45,000; leasehold improvements $60,000; initial inventory $12,000; working capital (6 months) $27,000; marketing & signage $6,000."
Version B reads like someone who's thought it through. Version A reads like a guess. Same amount, completely different level of trust.
Two rules
- Itemize to specific, quotable line items — tie them to real quotes where you can.
- Make the pieces add up to exactly what you're asking for.
The tell
Any single line that's a large "miscellaneous" or "other" is a red flag. Break it down or cut it.
See where your plan stands
Paste the plan you have into the free Scanner. It scores you against the eight criteria Canadian lenders use — in about thirty seconds, no account, nothing leaves your device.
Score my plan — freeLenderReady is an educational service, not a lender, broker, or financial advisor. Lending criteria vary by institution and change over time; treat this as a starting point, not a guarantee.