FINANCIAL MODELLING GUIDE

How to Build Sources and Uses

Sources and uses proves that debt and equity funding equal the complete investment requirement.

What the analysis measures

List acquisition, transaction, construction, fees, finance, reserves and other uses without double counting. Keep VAT or tax treatment explicit.

List each debt and equity source, including subordinate capital and retained cash. Distinguish commitment from funded amount where timing matters.

The difference between total sources and total uses must be zero. A balancing plug can conceal a missing cost or financing source.

Connect sources and uses to the monthly cash flow so total funding and the timing of funding both reconcile.

CLEAR ANSWERS

What does “How to Build Sources and Uses” explain?

Sources and uses proves that debt and equity funding equal the complete investment requirement.

Which assumptions matter most?

Review the inputs connected to sources and uses, capital stack, project funding and test them together rather than one at a time.

Should I use a calculator or a full model?

Use a calculator for a fast screening result and a full model when timing, financing, operating detail and sensitivities affect the decision.

Can this guide replace professional advice?

It is educational and does not replace deal-specific investment, accounting, tax, legal or lending advice.

Are the linked tools free?

All calculators and guides are free. Full Excel models are priced individually and as a complete library.