In some cases, a funding source can lead to the distortion of a planned transport scheme – for example by altering the objectives of a scheme in order to obtain funding from a particular source, or by seeking an infrastructure-based scheme rather than a management solution. This guidance note examines the implications of using or attempting to use various funding mechanisms. The distortions within funding streams are identified, and their implications for schemes and projects discussed. Recommendations have been made on how these distortions may be addressed.