4.4 Capital requirement calculation

4.4.6 Calculation of financing and liquidity gaps

When determining capital requirements, it is necessary to establish what needs to be invested and financed. Here the table on capital utilisation provides a comprehensive overview.

Financing is about how? What capital should be used to pay for the investments and the costs?

When working on a business plan, financing and liquidity gaps are particularly critical items.

• If the tangible investments are relatively easy to determine, the determination of the upfront costs is a special aspect.
• Pre-investment costs of the foundation can include investments in kind as well as fees and contributions. Overall, they can be financed as investment costs.
• Particularly in the case of start-ups, initial losses occur that lead to a liquidity gap. Preliminary costs to cover the liquidity gap can be financed as investment costs.

In economic terms, the issue of investment financing via equity and debt capital must be distinguished from the issue of depreciation.

While investments in tangible assets can be written off in full as business expenses with a defined term, start-up costs are only deductible as business expenses to a limited extent. This is to be decided in the individual case.