Table of Contents Hide
- What is a Business Loan?
- Why Do You Need a Business Plan to Get a Loan?
- How to Write a Business Plan Banks Can’t Resist
- Tips for Writing a Business Plan for a Loan
- Bank Business Plan Template Checklist
- Do You Need Help to Finish Your Business Plan Today?
- How do I write a business proposal for a bank loan?
- What do banks look for in a business plan?
- Why do banks ask for business plans?
- Related Articles
A business plan is essential when seeking funds from private investors or applying for a bank loan. But before getting a bank loan, you will need to construct your business plan in a way that can convince the bank of your capability to repay the loan. Most of the time, you can go as far as providing evidence of business continuity in your plan for you to access a bank loan. Aside from this little secret, this article has multiple business plan tweaks that can help you get a bank loan and we also have a free sample template for your business plan.
You can also opt-in for our ready-made bank business plan if you don’t wish to overwhelm yourself with the processes below.
What is a Business Loan?
A business loan is when a company takes funds from financial or private institutions to carry out its day-to-day operational activities. As a startup business, capital can be a hindrance to the smooth running of the business, so to overcome this, the business owner will choose to take a loan. With the loan, the business owner can also purchase equipment, pay debts, or pay for services that will benefit the company. A business loan can either be taken by a small business or a big corporation, it has no limitations.
Why Do You Need a Business Plan to Get a Loan?
The need for a business plan is to show your lenders that you understand your business, its capabilities, and how it works. By writing a clear and concise business plan that contains vital information that your reader might look out for, which might include a continuity plan, then you have a great chance of getting a bank loan. If your business plan is clear and forward-looking enough, your lender will be convinced about your business potential and how well you can be able to pay back the loan.
How to Write a Business Plan Banks Can’t Resist
A traditional business plan format is basically what lenders are looking for as part of your loan application before they grant you a bank loan, while some bankers are interested in seeing a continuity plan that will let you pay back a loan even in the worst scenarios. However, this business plan will cover whichever tactics they come up with.
Meanwhile, there are different sections of a business plan, but most bankers look out for some combination of the following key elements before granting a bank loan. Let’s analyze these sections.
#1. Executive Summary
Your executive summary should include information about your products and services. You can also mention your management team, employees, business location, and financial details. It is more like a summary of other sections of your business plan.
#2. Company Overview
In the company overview section of your business plan, you will need to describe the strengths and specs of your business. Explain the problems your business can solve and highlight how you have a competitive advantage over your competitors. You can also include a brief description of your company, including when it was founded.
#3. Products and Services
What products do you offer your customers? How will you offer those products and services? Will your customers benefit from having them? These are the questions you will need to explain in this section. You can talk about your products and what makes them special.
#4. Market Analysis
In this section of your bank business plan, you need to show that you have done thorough research on your industry, target market, and competitors. You can explain more about your target market and how well you know who your potential customers are. Also, talk about how you will reach them and offer your services to them.
#5. Marketing and Sales Plan
The marketing and sales strategy of your business will determine how well it can grow. Because a marketing plan can help you build a strong client base that will bring in sales and profits. In this section, you will need to explain how you intend to advertise your products and how you will sell and deliver them to your customers.
#6. Operational Plan
The operational plan of your bank business plan will cover the physical requirements that are needed to grow your business. It can be your location, equipment, supplies or facility requirements. You can also include your production goals and customer service details in this section.
#7. Management Team
This section should include the personnel structure of your company. You should list each key element and its responsibilities. You can also describe who they are and the skills they possess. It is also important to include how their qualifications can enhance the growth of your investment.
#8. Financial Plan
This section of your bank business plan will show the financial strength of your business. Most times, bankers concentrate on the information you include in this section to understand your track record and capacity to repay the loan. When filing your financial statements and forecasts, be sure that you are completely honest and transparent.
#9. Funding Request
This section should be concise and straightforward. You will need to explain the amount of loan you are requesting and how you intend on investing it into your business. You will also need to include your strategy for paying off your loan.
You can add other necessary information that you could not include in other sections. It can be in the form of important documents, letters of referral, licenses, permits, and other legal documents.
Tips for Writing a Business Plan for a Loan
- While writing, do not use complicated language; it is better to write in simple and plain language. Your business plan should be clear and well-structured.
- Always sell yourself. Remember that the purpose of this business plan is to attract your lenders to offer you a loan, so it is best to remember the purpose while writing.
- Focus on the positive points of your company. Demonstrate that you have thought of multiple scenarios and that nothing can go wrong or stop you from paying back the loan. You can also state that you have a business continuity plan for the continual running of your company, this will increase the chances of getting a bank loan.
- If it gets too tough, then consider working with a professional or perhaps getting our unique ready-made bank business plan. You need an absolutely professional document to ensure that nothing goes wrong.
Bank Business Plan Template Checklist
The essence of this free sample template for your business plan is to help you secure a bank loan. The essence of this bank business plan template checklist is to help you understand some of the key things that will strengthen your loan application. For you to obtain a bank loan, you need to include these free sample templates while writing your business plan.
- Show that you understand your target customer.
- Use evidence to back up each statement you make.
- Do not miss a point while writing; ensure that every strategy has a link.
- State your risks and your plans to overcome them.
- Proofread and review your documents.
Do You Need Help to Finish Your Business Plan Today?
It is okay for you to see writing a business plan as a gargantuan task, especially if you’ve never written one before. Although you don’t need a specific qualification to write one, getting the right business plan can be tough. At BusinessYield Consult, we help entrepreneurs like you come up with a unique business plan.
That is why we have created this ready-made bank business plan that can help you get a bank loan in a jiffy. With the contents of this business plan, every bank would approve your loan request so you can get your business ideas up and running. Place your order now!
Every business needs capital to grow, and yet it is understandable when a company or corporation lacks startup capital. This is why a good business plan is needed by every business to help attract investors or secure loans from public or private facilities. However, for loans to be granted, your business plan needs to be well-written to convince your lenders of the capability of the business to pay back the loan. You can follow the procedures above to create a winning business plan.
How do I write a business proposal for a bank loan?
To write an effective proposal, you need to make use of simple language and avoid some technical terms that might confuse the lenders. You need to review your proposal and make sure you inform your lenders on how you would pay back the loan.
What do banks look for in a business plan?
Bankers expect you to carefully explain your financial projections while adding your income, balance, and cash flow. This statement should be on a monthly scale for one year. Your cash flow should be explicitly stated.
Why do banks ask for business plans?
A business plan is essential for banks because they want to detect the nature of the company they are lending to. They are looking forward to seeing concise goals and an experienced management team that would contribute to the growth of the business.