4. Borrowing: the financing plan

Long-term borrowing is generally used for capital expenditure. It can also be used to replace short-term loans, which are by definition more precarious, whether to reconstitute or maintain working capital at the appropriate level. These loans are intended to be repaid out of the profits generated by the planned activity. Lenders will therefore be interested in the company's financial health and prospects, based on current profitability and that of the projects to be financed. A financing plan must therefore be drawn up for a company, or consolidated for a group. This table is usually similar to the 1 table.