How To Create A Business Plan For A Loan

Plans and loan applications aren t interchangeable however.

How to create a business plan for a loan. New trends and the data show us that the best time to complete a robust plan may now come later. Nowadays it can be short perhaps even a lean business plan but banks still want that standard summary of company product market team and financials. A banker may not be interested in your. Simplify the planning process by breaking the work up into manageable bite sized steps.

For an established firm include tax returns for the last three years. Your business plan for a loan application is a professional document so be sure it looks professional. Contact a professional business plan writer or business attorney or accountant to write the plan. Clearly and briefly describe who you are your business background the nature of your business or start up and how the loan will be used to help the company succeed.

That way you can focus on one section at a time to make sure it s accurate. If you have a logo it should go on the cover. Or you can download business plan software such as plan write or business plan pro. Larger businesses may use a business requirements document to show how the.

So here s what we recommend. You will need a balance sheet a proposed income statement p l a break even analysis and possible sources and uses of funds statement to show where the money will come from and where it will be spent. The answers to the first question are shown in the business plan and financial spreadsheets you will be presenting. Additionally you should include personal tax returns and a financial statement for any owner with a minimum 20 stake in the company.

Generally a loan proposal should include these elements. A business plan still plays a critical role in launching a profitable and sustainable venture today. The exact contents of a business plan will differ plan by plan but in general the typical plan should include an executive summary a business description a market or competitive analysis a description of the proposed operational structure a product description and a pitch to raise capital if applicable. Begin your proposal with a simple and direct cover letter or executive summary.

A business plan must contain data demonstrating your firm s capacity to repay the debt. The cover page should contain the name of your business and your contact information.