Description
For this part of the course project, you will demonstrate your ability to identify how firms raise funds through the use of debt, equity, and retained earnings.
Your client, SmartClean, Inc., is a cleaning service for office and industrial locations. SmartClean has been in business for 5 years and has shown steady revenue growth each year. The owner originally started the business using a business loan. The owner has $10,000 remaining on the loan after steadily making payments and has an excellent personal and business credit history.
The owner wishes to expand the SmartClean business into three new territories, needs an infusion of capital, and is looking for $50,000 in order to make the expansion.
The expected fixed costs for the current business and expansion is $75,000. SmartClean's average charge per job is $250.00. The variable costs per job is $35.00.
To complete this assignment, write a 5-page, APA formatted proposal that includes the following parts:
- Summary of client needs
- Advantages and disadvantages of debt financing
- Advantages and disadvantages of equity financing
- Recommendation for a financing strategy for SmartClean
- Complete breakeven analysis (based on given price analysis and cost)

Explanation & Answer

Hello, the work is complete and I am looking forward to work with you in future.Great moments in your endeavors
Running head: FUNDING PROPOSAL
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Funding Proposal
Institution Affiliation
Instructor’s Name
Student’s Name
Course Code
Date
FUNDING PROPOSAL
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Funding Proposal
Every business operation looks forward to expanding and increasing it revenue
generation formulas. To achieve the development agenda, the firm has to have a clear direction
on which is the best strategy to use when investing. An enterprise that is expecting to make an
impact in the market seeks advice from professional in that area. In this case, SmartClean
Company is a cleaning service company that has been offering its services for office and
industries locations. The firm has been in operation for the last five years and has shown steady
growth in its earnings and revenue generation. The initial capital for starting this business was
from a loan obtained by the owner.
However, due to increased demand for the services in other areas, the company is looking
to expand its operation, but the required amounts for expansion purpose has not be obtained.
Currently, the owner has $10,000 remaining on loan balance that h...
