FREE FOR LIFE

Free for Life



Free for Life

Executive Summary

We are going to launch a non-profitable charitable institute for those prisoners who have been released. We will support them to get back to life. We will help them financially so that they can start a new life.

This project will be needing finance to be executed. The source of revenue will be Government bodies and the individuals. To start the project we need a capital investment, for this purpose we are presenting this project to the Bank of Mulhearn. We need an initial investment of £ 60,000, out of which we are contributing £ 10,000 and asking for a two year £ 50,000 loan at the interest rate of 0.05% from Bank of Mulhearn.

Free for Life

Introduction of the business

“Free for Life” is a newly formed charity aiming to assist people being released from prison to integrate back into society. This will help reducing the very high rate of re-offending and therefore not only helping the individuals but also making society as a whole a better place.

It is a project for social welfare and this is the strongest point which would help us to get finance from the bank. “Free for Life” will not merely assist the released from prison but also help them to set up a new business or help them to get a respectable job. We will support them to get back to life and help them financially so that they can start a new life. This reflects the mission of the organization. As mentioned above, it is a non-profitable organization hence the chances of bankruptcy are low.

Basically, it is a micro-finance project and does not possess great risk in financing (Financial economics: Efficiency and beyond, 2009), so we are looking forward to the bank for supporting us to execute this social welfare project.

Key Cash Flow Features and Issues

The key cash flow feature is the initial investment which is £ 41,500. We have considered a 10% increment in cost and revenues semi-annually, which will not be applicable on loan payments. Similarly, we assume a £ 50,000 loan at the interest rate of 0.05% for two years.

Other key factors are revenue from political bodies (Government) revenue from individual charities, rent Expense, salaries, utility bills, cost of vehicles, vehicle running costs, and cost of office equipment, management remuneration, and charity for released prisoners and preliminary expenses (See Annexure).

The Business Prospects

The forecasted growth rate of business is 10% semi-annually (based on assumptions for revenues and costs). The efforts to get revenues will enhance our revenues. And increase in interest and inflation rate will increase costs.

As stated above, This project requires finance for execution. The source of revenue will be political leaders and the individuals. To start the project we need a capital investment, for this purpose we are presenting this project to the Bank of Mulhearn. We need an initial investment of £ 60,000, out of which we are contributing £ 10,000 and asking for a two year £ 50,000 loan at the ...