FINANCIAL MODELLING GUIDE
How to Build Sources and Uses
Sources and uses proves that debt and equity funding equal the complete investment requirement.
In this guideWhat the analysis measuresCalculation frameworkUnderwriting reviewHow to use the result
What the analysis measures
List acquisition, transaction, construction, fees, finance, reserves and other uses without double counting. Keep VAT or tax treatment explicit.
Calculation framework
List each debt and equity source, including subordinate capital and retained cash. Distinguish commitment from funded amount where timing matters.
Underwriting review
The difference between total sources and total uses must be zero. A balancing plug can conceal a missing cost or financing source.
How to use the result
Connect sources and uses to the monthly cash flow so total funding and the timing of funding both reconcile.