- Business Loans
How To Write A Successful Business Plan For A Loan
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Published: Aug 18, 2022, 12:46pm
A business plan is a document that lays out a company’s strategy and, in some cases, how a business owner plans to use loan funds, investments and capital. It demonstrates that a business is already producing income and has a plan to continue doing so moving forward.
A successful business plan is well-written, realistic, concise and, most importantly, convinces financial institutions that approving your business for a loan is a smart choice.
Here’s what you need to know about each section of a business plan and how to write a plan that will earn a lender’s stamp of approval.
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What Does a Successful Business Plan Include?
A successful business plan outlines your entire business and effectively explains how it makes money and why it’s likely to succeed. This is especially important if you’re trying to get a small business loan .
The content of a business plan should vary from company to company, but there are a few common sections that will help lenders better understand your business and help you qualify for financing.
Executive Summary
An executive summary concisely summarizes your business plan—usually on one page. The goals of this section are to inform the reader about the business as a whole, summarize what is contained in the rest of the document and capture their interest. That said, the best use of this section may depend on the age of your business.
- Startups. Startup owners typically use the executive summary to discuss the business opportunity, their target market and their planned strategy for building the business. The section also may touch on relevant market competition. Startup companies in particular should use the executive summary to build a lender’s confidence in the business.
- Established businesses. Companies that have been in business for several years usually orient their executive summaries around past achievements and growth plans. In this case, the section may begin with the company’s mission statement and provide information about business operations and financials before outlining future goals.
Industry Analysis
The industry analysis section of a business plan defines the business’ industry and mentions current trends—with a focus on risks and opportunities. The section also informs the reader about how the industry works and where the business fits in the industry as a whole.
This section should start by defining the industry, as well as what products and services it provides, and what consumer demand it fulfills. Next, identify the most important influences in the industry. In the case of a bank, this may include applicable government regulations; for a clothing boutique, it may be consumer trends and budget.
The industry analysis should also define the company’s intended niche in the industry.
Market Analysis
The market analysis zooms into the specific market niche mentioned in the previous section. Market analysis aims to detail the segment of the broader market the business is intended to fit within. For example, a fashion brand or boutique may target high-income consumers.
Use this section to explain how the segment differs from the wider industry. In the fashion boutique example, a market analysis may reveal that high-income consumers in the fashion industry pay substantially more for brands that are considered exclusive.
Also, describe the size of your business’ niche and how it fits into the wider industry. This should include mention of how many existing businesses operate in this niche and how they target consumers.
Competitor Analysis
A competitor analysis explains what competitors in your niche do and informs the reader of the current market environment. Start with an overall assessment of your competitors. Then, discuss the most relevant competitors for your niche. When conducting a competitor analysis, ask yourself the following questions:
- Where do your ideal customers currently shop?
- How do these competitors differentiate themselves?
- How are competitor products and services priced?
- Why do customers choose those products or service providers?
Using the example above, many clothing boutiques compete by providing higher quality products or a unique, luxury shopping experience. If your store has a single location, your competitor might be another clothing store with a similar price-point or signature style.
Target Market Segmentation
In the target market segmentation, you’ll identify your business’ target market and describe how you will meet its needs. This section aims to instill confidence in the lender by providing a clear and objective strategy for building revenue.
Begin the section by informing how your products or services meet your shoppers’ needs. Next, explain how consumers can access your products or services—including a brief outline of your marketing strategy and how it is tailored to your target clients. Contrast this to your competitors’ strategy as defined in the previous section. After reading this portion of the business plan, the lender should know exactly how your business intends to compete.
Services or Products Offered
Use this section of the plan to explain what your business offers its ideal customers and to contrast your product and service offering to that of your competitors. Start by defining your product and service offering, including pricing. Also, inform the reader what equipment or materials you need to provide your products and services. For instance, a fashion apparel brand needs access to textile manufacturers.
Marketing Plan and Sales Strategy
Now that the lender understands what you offer, explain how you plan to market it in greater detail. This section outlines how you’ll attract and convince consumers to buy from you. The goal is to provide a flexible and realistic marketing and sales plan that convinces the reader you know how to attract consumers.
The sales strategy section of your business plan also should include the company’s revenue goals and explain how your marketing and sales department will achieve them. Provide in-depth details on the marketing and sales challenges you’ll face and how to overcome them. While this information is always relevant, it’s particularly important to lenders reviewing your loan application as they will want to know how you plan to make money.
Operations Plan
The operations plan details your company’s day-to-day operations. This detail-oriented section should comprehensively explain how your business will operate, beginning with a list of your company’s daily activities.
As a high-end clothing boutique, your daily operations may include:
- A manager reconciling sales receipts and inventory numbers
- Stylists researching future trends and sourcing new inventory
- A marketing team building an online and social media presence
Note: This section is more about your business’s daily processes rather than its organizational structure—which is the next section.
Management Team
Use the management section of your business plan to tell the lender who does what in the company and how they’re compensated. Help the lender better understand the people behind the company by including biographical and background information on the company’s owners and key executives.
The best way to present this information is often with an organizational flowchart. You can also include other information about the company in this section, like your mission statement and values.
Financial Plan
Your financial plan tells a prospective lender two things: how much you plan to spend each year and how much you’ll earn in revenue. This section is the most important for most businesses, as it can make or break a lender’s confidence and willingness to extend credit.
Always include the following documents in the financial section of your business plan:
- Cash flow statements
- Income statements
- Capital expenditure budgets
- Balance sheets
Most lenders ask established businesses for at least three years of financial data, and some may ask for five. Preferably, include as much financial data as possible. If you’re a startup, include estimated costs and projected revenue, and supplement your data with industry averages or financial data from competitors.
Exit Strategy
Your business plan should always include an exit strategy in case things go wrong or you simply decide to close up shop. This may include everything from taking on new partners to selling your business or even declaring bankruptcy. Having an exit strategy is another way to show lenders that you have thought about the risks involved with your business and are prepared for them.
The appendix of a business plan normally contains financial information and other documents the reader may need to gain a comprehensive understanding of the business. Established businesses typically include financial statements and projections, at a minimum. In contrast, a startup could include the research they conducted to make the business plan.
Also consider including relevant resumes, marketing materials, letters of recommendation or references. For ease, your appendix should have a table of contents directing lenders to the most important documents.
What Lenders Look for In a Business Plan
There are five things that lenders typically look at when making business lending decisions: character, capacity, capital, conditions and collateral. By understanding these key considerations, you can draft a business plan that speaks to a lender’s interests and concerns.
A business’ character includes subjective, intangible qualities like whether its owners are perceived as honest, competent or determined. Stated another way, lenders want to know that you are honest and have integrity. These qualities can be critical for evaluating candidates because most lenders don’t want to lend to someone they don’t feel they can trust.
To evaluate the character of you and your business, lenders look at your personal credit history as well as your business’ financial history. Use your business plan to bolster your character by including ample financial records, letters of recommendation and other relevant documents.
Lenders want to know that you have the ability to repay the loan. They evaluate this by looking at your business’ financial history to see how much revenue you have generated in the past and how much profit you have made.
Lenders might also judge your capacity based on your business’ financial projections as well as your personal credit history and household income. Where relevant, lenders look at your management team to see if they have the experience needed to grow your business or keep it on a path toward success.
When reviewing your loan application, lenders read your business plan to see how much money you need to borrow and how you will repay the loan. They also look at your financial statements to see how much cash you have on hand and how much debt you are carrying.
Likewise, lenders often prefer business owners who have made larger personal financial investments in their enterprises. A personal financial investment reveals your commitment to the business and demonstrates you have the resources to pay off a large loan.
Ultimately, a lender’s biggest concern is whether your business can realistically succeed. So, they judge your company’s chances of success using your business plan as well as current market conditions. A good business plan can improve your lender’s confidence by convincing the lender that market conditions and your business strategy increase your odds of success.
In some cases, lenders want to know that you have something of value that they can use to secure the loan. This can be property, equipment, inventory or even receivables. If you don’t have any collateral, lenders may still approve a loan if you have a good credit history and a solid business plan.
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Business Plan Template for Small Businesses, Startups, and Entrepreneurs
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- Instructions included More than just a template, you’ll learn how to write a winning business plan
- SBA-lender approved format Your plan will be in the format lenders and investors expect
- Fill-in-the-blanks simplicity You don’t need to be an expert, this template makes business planning easy
- 100% free We’re here to help you succeed in business, no strings attached
Start your business plan today
Why you need a business plan.
- Develop a strategy for success
- Reduce the risk of starting a business
- Explore new business ideas
- Attract investors and get funding
Why you should start with a business plan template
- Helps organize your thoughts.
- Provides guidance, instructions, and examples so that you’re not stuck looking at a blank page.
- Gives you an investor-ready and SBA-approved business plan format.
- Speeds up the planning process.
- Oh, and it’s 100% free!
What is included in this business plan template?
- Company Purpose
- Problem We Solve
- Our Solution
- Target Customers
- Financial Summary
- Funding Needed
- Competition
- Intellectual Property/Patents
- Milestones/Roadmap
- Target Market
- Market Trends
- Industry Analysis
- Key Customers
- Sales Channels
- Marketing Activities
- Pricing Strategy
- Positioning
- SWOT Analysis
- Company Structure
- Management Team
- Projected Profit & Loss
- Projected Balance Sheet
- Projected Cash Flow Statement
- Use of Funds
- Exit Strategy
- Additional Documentation
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Business Plan Example and Template
Learn how to create a business plan
What is a Business Plan?
A business plan is a document that contains the operational and financial plan of a business, and details how its objectives will be achieved. It serves as a road map for the business and can be used when pitching investors or financial institutions for debt or equity financing .
A business plan should follow a standard format and contain all the important business plan elements. Typically, it should present whatever information an investor or financial institution expects to see before providing financing to a business.
Contents of a Business Plan
A business plan should be structured in a way that it contains all the important information that investors are looking for. Here are the main sections of a business plan:
1. Title Page
The title page captures the legal information of the business, which includes the registered business name, physical address, phone number, email address, date, and the company logo.
2. Executive Summary
The executive summary is the most important section because it is the first section that investors and bankers see when they open the business plan. It provides a summary of the entire business plan. It should be written last to ensure that you don’t leave any details out. It must be short and to the point, and it should capture the reader’s attention. The executive summary should not exceed two pages.
3. Industry Overview
The industry overview section provides information about the specific industry that the business operates in. Some of the information provided in this section includes major competitors, industry trends, and estimated revenues. It also shows the company’s position in the industry and how it will compete in the market against other major players.
4. Market Analysis and Competition
The market analysis section details the target market for the company’s product offerings. This section confirms that the company understands the market and that it has already analyzed the existing market to determine that there is adequate demand to support its proposed business model.
Market analysis includes information about the target market’s demographics , geographical location, consumer behavior, and market needs. The company can present numbers and sources to give an overview of the target market size.
A business can choose to consolidate the market analysis and competition analysis into one section or present them as two separate sections.
5. Sales and Marketing Plan
The sales and marketing plan details how the company plans to sell its products to the target market. It attempts to present the business’s unique selling proposition and the channels it will use to sell its goods and services. It details the company’s advertising and promotion activities, pricing strategy, sales and distribution methods, and after-sales support.
6. Management Plan
The management plan provides an outline of the company’s legal structure, its management team, and internal and external human resource requirements. It should list the number of employees that will be needed and the remuneration to be paid to each of the employees.
Any external professionals, such as lawyers, valuers, architects, and consultants, that the company will need should also be included. If the company intends to use the business plan to source funding from investors, it should list the members of the executive team, as well as the members of the advisory board.
7. Operating Plan
The operating plan provides an overview of the company’s physical requirements, such as office space, machinery, labor, supplies, and inventory . For a business that requires custom warehouses and specialized equipment, the operating plan will be more detailed, as compared to, say, a home-based consulting business. If the business plan is for a manufacturing company, it will include information on raw material requirements and the supply chain.
8. Financial Plan
The financial plan is an important section that will often determine whether the business will obtain required financing from financial institutions, investors, or venture capitalists. It should demonstrate that the proposed business is viable and will return enough revenues to be able to meet its financial obligations. Some of the information contained in the financial plan includes a projected income statement , balance sheet, and cash flow.
9. Appendices and Exhibits
The appendices and exhibits part is the last section of a business plan. It includes any additional information that banks and investors may be interested in or that adds credibility to the business. Some of the information that may be included in the appendices section includes office/building plans, detailed market research , products/services offering information, marketing brochures, and credit histories of the promoters.
Business Plan Template
Here is a basic template that any business can use when developing its business plan:
Section 1: Executive Summary
- Present the company’s mission.
- Describe the company’s product and/or service offerings.
- Give a summary of the target market and its demographics.
- Summarize the industry competition and how the company will capture a share of the available market.
- Give a summary of the operational plan, such as inventory, office and labor, and equipment requirements.
Section 2: Industry Overview
- Describe the company’s position in the industry.
- Describe the existing competition and the major players in the industry.
- Provide information about the industry that the business will operate in, estimated revenues, industry trends, government influences, as well as the demographics of the target market.
Section 3: Market Analysis and Competition
- Define your target market, their needs, and their geographical location.
- Describe the size of the market, the units of the company’s products that potential customers may buy, and the market changes that may occur due to overall economic changes.
- Give an overview of the estimated sales volume vis-à-vis what competitors sell.
- Give a plan on how the company plans to combat the existing competition to gain and retain market share.
Section 4: Sales and Marketing Plan
- Describe the products that the company will offer for sale and its unique selling proposition.
- List the different advertising platforms that the business will use to get its message to customers.
- Describe how the business plans to price its products in a way that allows it to make a profit.
- Give details on how the company’s products will be distributed to the target market and the shipping method.
Section 5: Management Plan
- Describe the organizational structure of the company.
- List the owners of the company and their ownership percentages.
- List the key executives, their roles, and remuneration.
- List any internal and external professionals that the company plans to hire, and how they will be compensated.
- Include a list of the members of the advisory board, if available.
Section 6: Operating Plan
- Describe the location of the business, including office and warehouse requirements.
- Describe the labor requirement of the company. Outline the number of staff that the company needs, their roles, skills training needed, and employee tenures (full-time or part-time).
- Describe the manufacturing process, and the time it will take to produce one unit of a product.
- Describe the equipment and machinery requirements, and if the company will lease or purchase equipment and machinery, and the related costs that the company estimates it will incur.
- Provide a list of raw material requirements, how they will be sourced, and the main suppliers that will supply the required inputs.
Section 7: Financial Plan
- Describe the financial projections of the company, by including the projected income statement, projected cash flow statement, and the balance sheet projection.
Section 8: Appendices and Exhibits
- Quotes of building and machinery leases
- Proposed office and warehouse plan
- Market research and a summary of the target market
- Credit information of the owners
- List of product and/or services
Related Readings
Thank you for reading CFI’s guide to Business Plans. To keep learning and advancing your career, the following CFI resources will be helpful:
- Corporate Structure
- Three Financial Statements
- NEW CFI Template Marketplace
- See all management & strategy resources
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Loan Officer Business Plan Template
Written by Dave Lavinsky
Over the past 20+ years, we have helped thousands of loan officers develop business plans to grow their businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a loan officer business plan template step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your loan business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to grow your existing loan business, you need a business plan. A business plan will plan out the growth of your loan business in order to improve your chances of success. Your loan business plan is a living document that should be updated annually as your company grows and changes.
If you want to grow your loan officer business, you need a business plan. Below are links to each section of your loan officer business plan template:
Executive Summary
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
In it you must provide an overview of each of the sections of your plan. For example, give a brief overview of the loan industry. Discuss the type of loan business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
Company Analysis
In your company analysis, you will detail the type of loan business you are operating.
For example, you might operate one of the following types of loan businesses:
- Commercial Loan Officer : this type of loan business focuses on arranging business loans.
- Consumer Loan Officer: this type of business focuses on providing loans for things such as vehicles.
- Mortgage Loan Officer: this type of loan obtains loans for consumer to purchase real estate.
In addition to explaining the type of loan business you will operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to question such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, dollar value of loans arranged, etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
Industry Analysis
In your industry analysis, you need to provide an overview of the loan industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the loan industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy, particularly if your research identifies market trends.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your loan business plan:
- How big is the loan industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your loan business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
Customer Analysis
The customer analysis section of your loan officer business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: parents, students, professionals, businesses, couples, families, prospective home buyers, prospective car buyers, contractors, etc.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of loan business you operate. Clearly, someone interested in purchasing a new car would respond to different marketing promotions than a business seeking equipment financing, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most loan businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
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Competitive Analysis
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other loan businesses.
Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes commercial banks, online loan brokers, etc. You need to mention such competition as well.
With regards to direct competition, you want to describe the other loan businesses with which you compete. Most likely, your direct competitors will be loan officers located very close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
- What types of customers do they serve?
- What types of loans do they specialize in?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide higher value loans?
- Will you offer lower interest rates on loans?
- Will you provide better customer service?
- Will you offer a wider variety of loan options?
Think about ways you will outperform your competition and document them in this section of your plan.
Marketing Plan
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a loan officer business plan, your marketing plan should include the following:
Product : In the product section, you should reiterate the type of loan company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to loans, will you provide insurance, financial advisory, or real estate services?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.
Place : Place refers to the location of your loan company. Document your location and mention how the location will impact your success. For example, is your loan business located near a real estate brokerage, or car dealership, etc. Discuss how your location might be the ideal location for your customers.
Promotions : The final part of your loan officer marketing plan is the promotions section. This is perhaps the most important section of your plan. Here you will document how you will drive customers to your website and/or location(s). The following are some promotional methods you might consider:
- Advertising in local papers and magazines
- Reaching out to local websites
- Social media marketing
- Local radio advertising
Operations Plan
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your loan business, including processing loan applications, arranging signings, marketing your business, paperwork, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to arrange your 100 th loan, or when you hope to reach $X in revenue. It could also be when you expect to expand your loan business to a new city.
Management Team
To demonstrate your loan business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally you and/or your team members have direct experience in managing loan businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience as a loan officer or success being a local bank or credit union manager.
Financial Plan
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you work on commission, or on a fee for services model? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your loan business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a loan business:
- Location build-out including design fees, construction, etc.
- Cost of equipment and supplies
- Payroll or salaries paid to staff
- Business insurance
- Taxes and permits
- Legal expenses
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or outline your strategic partnerships with local realtors and lenders.
Putting together a business plan for your loan officer business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the loan industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful loan business.
Loan Officer Business Plan FAQs
What is the easiest way to complete my loan officer business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Loan Officer Business Plan.
What is the Goal of a Business Plan's Executive Summary?
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of loan officer business you are operating and the status; for example, are you a startup, do you have a loan officer business that you would like to grow, or are you operating a chain of loan officer businesses?
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Business Loan Proposal Template
This business loan proposal template managed to secure funds to over 16,000 clients! If you're unsure of how your business loan requests should look, simply use this completely customizable template and get ready to close the deal! You can change the text, images, colors, your logo - it's all 100% editable.
What's in this business loan proposal template
Visually attractive cover.
No matter which industry you're writing a business loan request for, the first impression always matters. In this business loan proposal template, the first thing your creditor sees is a nicely designed cover, fit for a world-class company like yours. From the text, logo, and background image, you can change everything to make it a better fit for your needs.
The best way to start your bank loan application is with a direct and straightforward cover letter or executive summary. Use this page to 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 your company succeed.
Like everything else in this proposal, it's completely editable - the colors, the text, images, layout - everything.
Business profile
Explaining what your business does and the process of using and repaying the loan may sound a bit overwhelming to small business owners. That's why we created a business profile - a page dedicated to the history of your business, along with current activity and results.
It is a perfect place to highlight your business plan, leave some links to your brochures or any other documents that will help soft sell your business.
Management experience
The best way to show potential creditors how serious you are about your business is through management experience. Describing the experience, qualifications, and skills of key members of your management team gives you the perfect opportunity to show you understand exactly what your business needs to succeed.
In this business loan proposal template, we've created a whole section for management experience. All you need to do is fill it in!
Loan request and payment
This section in the business loan proposal template is all about the numbers. Show precisely why you need business financing, the amount you are requesting, the interest rate, as well as what you will use it for.
Whether you're looking for a small business loan or a large sum of money, this is the place to write it down. Like the rest of this template, every part is editable, from the text and logo to the background image.
Financial statements
This is the section the creditor will spend the most time looking at! It is also the perfect place to include your personal financial statements, balance sheets, credit history and reports, tax returns, and any other financial document you see fit for the cause.
Next steps and supporting documents
Once the hard part of writing the loan proposal is done, use this section to attach the proof behind the story you have told. If you're feeling optimistic, you can even add a digital signature box that will allow your creditors to approve your business loan right away!
Get Paid Straight from the Proposal
No more messing around with invoices, no more waiting for checks to clear. This proposal template lets you take payments directly from the proposal, using the integrations with PayPal, Stripe, and GoCardless.
Don't take just our word for it
Here is what some of our 10,000 users across the globe have to say
Sara K. CEO & Founder
Shade O. Business Owner
Brent R. Marketing and Advertising
150+ other free proposal templates just like these are also available inside Better Proposals
This financial advisor proposal is customizable and lets you showcase your portfolio, expertise and anything else you can offer to your clients. Use this financial advisor proposal to get amazing results.
Every mortgage advisor knows how important it is to build a trusting relationship with your clients. Use our mortgage advisor proposal to show your previous work and win over new clients.
Use this professional funding proposal template to reach out to possible funders and increase your organization's visibility and credibility! The funding proposal is pre-written and saves you time while offering great success.
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How to Write a Business Plan That Will Get Approved for a Loan
If you need funding to start, expand, or acquire a business, you’ll need to know how to write a business plan for a loan . Yes, lenders will look at the standard factors required of all loan applicants, such as your credit history, credit score, and assets — But business loan lenders will also require a business plan.
Why do you need to know how to write a business plan for a bank loan? Because banks want to know your business idea will be viable and sustainable. To assess its viability, they look at all aspects, including financial statements, sales strategies, and your overall financial plan. Your financial projections are key — a good business plan will include several years’ worth of past revenue and profits (if available). It will also forecast sales and profits three to five years into the future. Lenders also want to know what the business is, what products you offer, what the competitive landscape looks like, and who your key personnel are. This information (and more) is used to gauge your business’s chances of success, which will ultimately allow you to succeed and to make loan payments to the lender.
While a business plan for a loan should be clear and comprehensible to loan officers, writing a business plan for a loan also benefits you as the owner. A well-executed business plan serves as a guide to your business. You can use the past financials and the forecasts as blueprints to determine whether you are on track for success, for example.
Tip : When you create a business plan to get a loan, remember you are also writing a document that can be used as a forecast and guide for yourself and your business.
What Does a Successful Business Plan Include?
A strong business plan for a loan application will include the following elements:
- Cover Page and Table of Contents
- Executive Summary
- Company Description
- Market Plan and Analysis
- Organization and Management
- Service or Product
- Marketing and Sales
- Financing Analysis
- Funding Request
Many lenders may still be looking critically at how your business will operate during the COVID-19 pandemic. Lenders are primarily looking at two criteria:
- How the business’s revenue will continue under COVID-19 restrictions and effects.
- How a borrower will safely operate their business.
We recommend adding a “COVID-19” section to your business plan. It doesn’t need to be very lengthy, but it should cover how you plan to keep a safe and sanity working environment for your staff and customers. Place it in or after your Organization and Management section. The information to include is:
- Restricting occupancy
- Stocking up on cleaning supplies and hand sanitizer
- Wearing masks, gloves, or other safety gear
- Wiping down equipment – for example, a fitness facility might wipe down equipment every hour
To address concerns about revenue, include information such as:
- If your state has allowed your industry to reopen
- New or alternative ways to earn revenue if you can’t open a physical location
If you’re looking to open a franchise, make sure to check with your franchisor to learn what protocols for their franchisees they’ve put in place. Lots of franchises have been adding mandatory safety steps for franchisees to put in place.
1. Cover Page and Table of Contents
Your business plan for a loan application is a professional document, so be sure it looks professional. The cover page should contain the name of your business and your contact information. If you have a logo, it should go on the cover.
Both lenders and you will appreciate a table of contents and page numbers in the business plan for a loan application, so they can quickly find specific sections. If you are delivering your plan digitally and not physically, be sure your table of content is clickable and links readers to the correct sections.
2. Executive Summary
It’s common for business documents to carry executive summaries at the beginning so that busy people have the key takeaways from a larger document immediately at hand. Your reader shouldn’t feel they have to wade through a large document for crucial information.
Briefly summarize the entire business plan on a page. Describe the company, your product, and why you started the company. Include your chief competitors and why your product will succeed against them. If relevant, discuss the economic climate vis-à-vis your customers and products.
Tip : The executive summary shouldn’t include a great deal of financial information. If you have a particularly relevant or striking financial result, it can be included.
Example of an executive summary.
3. Company Description
The company description should include a mission statement, the company principles, any strategic partners, and your corporate structure. It will be relatively short.
4. Market Analysis
After you’ve told the lender what your company does and who does it, you’ll want to provide a competitive analysis of your market. Let’s be clear: the market analysis is not a full marketing plan. That will come later. The market analysis focuses on the qualities of the market, not a detailed plan of how you’ll capture it. Identify the existing gaps that your business will fill. A business plan’s market analysis should include:
- An industry overview and outlook
- Any differentiation in sector and niche
- Information on your target market
- The company’s marketing strategy and how it will make your company stand out
The market analysis should also specify the effect of outside sources on your company. For example, if the industry is subject to regulation, include information indicating your knowledge of the regulation and your past compliance with it (if your business is already up and running). Will you require raw materials? If so, how do you guarantee you’ll have them at costs that support your financials? Are there any risks to price points changing?
What about your competitors? How do they differentiate themselves? What is their pricing strategy?
While your market analysis will include information on your competitors, the real focus should be on your target customers. Where do they currently shop? Why? How old are they? What are their beliefs? What’s their current average income? Perhaps there is more than one type of customer, in which case you should include details about both customer segments. Showing investors you have mastery over your ideal customer adds confidence in your ability to succeed.
If your company is engaged in ongoing market research or research and development for competitive new products and services, indicate it in this section. Does your research include customer interviews? How are you ensuring that your research is credible?
The market analysis should be based on reputable sources. When describing your competitors and their products, for example, it should be clear to readers where the information comes from.
Tip : Many business owners engage third-party companies to perform an analysis. If you have, be sure to cite them. If your information comes from published research or a survey, be sure to cite those as well.
5. Organization and Management
The organization and management section should itemize your company’s management structure. Many business plans provide an organizational chart, a structure description, and salary forecasts.
The description should include each management position, the person in the position, their responsibilities, and their qualifications. If you have a Board of Directors, list them on a separate page, along with any experience relevant to your business’s success.
The principals of the firm, such as the owner and co-owners, are included in the business description section. If your company is small and currently contains only the principals, it isn’t necessary to include a separate organization and management section.
6. Service or Product
Now it’s time to describe your company’s product or service in detail. What do you sell, and who do you sell to? What exactly is your business model? What need are you fulfilling for the customer base? Business plans often itemize their entire product line with the planned or current pricing structure.
The service or product section should also include your product/service’s estimated lifecycle, and any research and development completed, in progress, or planned. Naturally, this section will vary greatly depending on your type of business. It should also include a description of any trademarks, patents, or other intellectual property rights, if applicable.
See an example of a service and product section here .
7. Marketing and Sales
The marketing and sales section includes three vital pieces of information:
- How will customers find out about your products?
- What will your sales channels and methods be?
- What is your growth strategy?
If you plan for customers to discover your products or services through informational methods like industry meetings, specify what your plan for that method is. If you plan to advertise or develop a public relations campaign, specify what your efforts will be. Will you be on social media channels? Which ones, and why? Are these efforts designed to appeal to specific demographics or types of customers? Which ones, and why? Will sales be accomplished via a targeted sales team? Will management call upon relevant prospective clients or stores? Will you have an online presence?
If you have a growth strategy, outline it. If you plan expansions to other geographic areas or other types of potential customers, discuss it in this section.
See an example of a marketing and sales section here .
8. Financial Analysis
The financial analysis section is key for lenders. The financial analysis must include financial projections for three to five years out. The further out into the future forecasts run, of course, the more difficult it is to predict with certainty. One solution is to prepare a business plan with three-year forecasts, but have a five-year forecast ready if the investors want them.
Tip : If you are already in business, you should also include historical results for the past three to five years (or for as long as the business has been operating, if it’s less).
The financial projections must include:
- Income statements
- Cash flow statements
- Capital expenditure budgets
- Balance sheets
They may also include profit and loss statements, sales forecasts, and financial metrics relevant to your industry. Lenders may ask you for more granular data, such as cost of sales or cost per product (or service).
You need to provide the projections by month, quarter, and year. Potential investors want to see the financials in both the short and long term. Why? Because businesses that aren’t meeting their monthly and quarterly projections can be risky. If they are falling behind in sales or profit, for example, they can fail rapidly.
On the other hand, if sales are much greater than projected, the company can find it challenging to keep up with production and other efforts. To counterbalance the risk, lenders always want a clear picture of what’s likely to happen.
See an example of a financial analysis section here .
Need funding? We can get your dream off the ground.
8.2 break-even analysis.
A break-even analysis is the calculation and study of the margin of safety of a company, based on revenue and associated costs.
Learn how to calculate break-even analysis in Excel here .
8.3 Projected Profit and Loss
Also known as a P&L forecast, this section will cover the projection of how much money your company will bring in and how much profit you’ll make from those sales.
Tip : Most accounting software, like QuickBooks or Peachtree, can create a P&L forecast for you after you enter sales and expenses.
8.4 Cash Flow Forecast
A cash flow forecast documents your estimate of how much money will come in and out of your business within a specific amount of time (usually 12 months). The forecast includes your projected income and expenses.
Learn more about how to model your cash flow forecast here .
Tip : Looking at your past cash flow through accounting software can help you determine your future cash flow and forecast it.
8.5 Projected Balance Sheet
A projected balance sheet is also known as a “pro forma” balance sheet. It lists out account balances on a company’s assets, equity, liabilities, and other spending and income that the P&L doesn’t cover – like cash from a loan or outstanding customer invoices.
Learn more about how to create a pro forma balance sheet here .
Learn how to create a company balance sheet and download a template here .
8.6 Business Ratios
Ratios in a business plan are used to assess and analyze the performance of a business. In this case, projected ratios are another good look for banks to understand your business’s potential and also serve as a goalpost for your planning.
Common Business Ratios (and Their Formulas)
Net Profit Margin Formula: Net Profit After Taxes / Net Sales Gross Profit Margin Ratio Formula: Gross Profit = (Revenue – Cost of Goods Sold) / Revenue Profit Margin Ratio Formula: Profit Margin = (Revenue – Expenses) / Revenue Quick Ratio (also known as “The Acid Test”) Formula: Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities OR Formula: Quick Ratio = (Current Assets – Inventory) / Current Liabilities ROI (Return on Investment) Ratio Formula: ROI Ratio = (Gain from Investment – Cost of Investment) / Cost of Investment Current Ratio Formula: Current Ratio = Current Assets / Current Liabilities Common Size Formula: Common Size Ratio = Line Item / Total
9. Funding Request
Now it’s time for your funding request! You need to clearly itemize why you need business financing, what amount you’re requesting (both current and prospective for the next five years), and what you will use the amounts for.
Tip : Describe how funding will contribute to the overall success of your company (and its strategic plan). Will it allow strategic R&D? Provide funds to acquire a smaller competitor? Create an opportunity for media buys and other marketing?
Here’s one way you can structure your funding request:
- Your current funding needs.
- Any future funding requirements over the next five years.
- How you intend to use the funds you receive.
- Any strategic future financial plans.
10. Appendix
Appropriate appendix materials include:
- Principals’ resumes
- Tax returns
- Relevant real estate documents
- Documents detailing the legal structure of your business
- Processing flowchart
- Letters of intent to purchase from buyers
- Advertisement and marketing materials
- Relevant training certificates
- Sales forecast
- Other financial forecasts
- Personnel plan
- Profit and loss statement
- Balance sheet
The Easier Way to Get a Business Loan
Navigating the business loan process on your own can be overwhelming. That’s why many current and aspiring small business owners work with a company like Guidant Financial that can guide you through the process.
Here’s what working with a consulting company like Guidant can offer:
- Simplified Application Process. Rather than wasting your time filling out multiple loan applications for every bank, we shop a single application to multiple lenders.
- Better Loan Terms: The ability to apply to several lenders at once often means receiving several loan offers, so you’ll have more choices when selecting your terms and conditions.
- Faster Approvals: We have established relationships with a vast network of lenders, which means your application goes directly to banks who are most likely to approve your loan.
Guidant supports you throughout the entire loan application process. And with our comprehensive loan package analysis, we ensure you’re matched with the lenders who provide the best loan rates and the greatest chances of approval. Call us at 888.472.4455 or pre-qualify in under five minutes .
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Home » Business Plans » Financial Services
How to Write a Bank Loan Business Plan [Sample Template]
Do you need a loan for your business? If YES, here is a detailed sample bank loan business plan template & proposal for a beverage distribution company.
Loan Proposal for Charlie & Tango Beverage Distribution Company®, LLC.
1. industry overview.
Charlie & Tango Beverage Distribution Company®, LLC is seeking to:
(a) Convert existing short-term notes of $165,000 to a long-term note to be repaid at $3,000 per month (plus interest).
(b) Establish a credit line of $300,000 to finance expected seasonal fluctuations in inventory and accounts receivable.
We have structured the business in such a way that repayment on long-term financing will come from continuing net profits that we will generate. So also, the repayment of the seasonal credit line will come from liquidation of inventory and receivables.
- Corporate Data
Name: Charlie & Tango Beverage Distribution Company®, LLC
Address: 1310 – 23nd Avenue N.W.
Seattle, Washington 98128
Phone: (206) 478-2600
Date Established: January 3, 2005
Form of Organization: Washington Corporation
Incorporated by Irwin and Irene Dickson on March 1, 2005.
Charlie & Tango Distribution Company®, LLC is a family business that is owned by Irwin Dickson and his immediate family members. Irwin Dickson has a B.Sc. in Business Administration, with over 8 years of hands on experience in the retailing and distribution industry, working for some of the leading brands in the united states.
Although the business is launching out by focusing on Trenton – New Jersey, but there is a plan to expand our distribution network all across the state of New – Jersey.
2. Executive Summary
Charlie & Tango Beverage Distribution Company®, LLC is a Seattle-based corporation that distributes different types of beverages to retailers and distributors out of a North Seattle warehouse location. The average customer is a small or medium – sized retailer of beverages, and other related retailers including mom and pop shops and shopping malls.
Estimated sales for fiscal 2005 is $1,250,000. Advertising expense has been low since most advertising is at the retail-level, co-op by the manufacturer of the products we will be distributing.
The primary focus of the business is excellent service and quality product delivery — and the ability to keep beverages in stock. Most accounts are carried on a 2 percent 10/Net 30 basis; few customers take discounts. Third party distributors are generally carried on a Net 10 basis.
Distribution is from a central warehouse in North Seattle, which is connected to a small showroom and also contains the corporate offices. Lead-time on ordering for inventory is quite short and style changes generally occur once per year.
Our major supplier is Nestle. Nestle’s terms are 2% 10/Net 30. Almost all the suppliers offer discounts, some even larger than 2% 10/Net 30. During 2005 there was one major price increase of about 5 percent. Charlie & Tango Beverage Distribution Company®, LLC operates out of leased premises and holds a very favorable lease through 2007.
For a business such as ours, location is not critical, although our current location does provide excellent access for delivery trucks. This is a distribution business and, therefore, depends upon efficient routing and /or shipping. It is important to note that bad debts have recently taken an alarming upturn in our line of business.
3. Our Products and Services
- Distribution of functional beverages and sports drinks
- Distributions of carbonated soft drinks
- Distribution of bottled water
- Distributions of fruit juices and cocktails
- Distribution of teas
- Distribution of energy and sport drinks
4. Our Mission and Vision Statement
- Our vision is to ensure that we not only meet but exceed the expectations of our clients no matter what those expectations are.
- Our mission is to build a world best loan business company that will favorably compete with other loan business in the industry.
Our Business Structure
Below is our management and organization structure please note that this excludes unskilled laborers who we will engage from time to time;
- Chief Executive Officer (Owner)
- Warehouse Manager
- Human Resources and Amin Manager
- Merchandize Manager
Sales and Marketing Manager
Information Technologist
- Accountants / Cashiers
- Customer Services Executive
- Drivers / Distributors
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Warehouse Manager:
- Responsible for organizing the safe and efficient receipt, storage and dispatch of warehoused goods
- Responsible for liaising with customers, suppliers and transport companies
- In charge of planning, coordinating and monitoring the receipt, order assembly and dispatch of goods
- Responsible for using space and mechanical handling equipment efficiently and making sure quality, budgetary targets and environmental objectives are met
- Responsible for keeping stock control systems up to date and making sure inventories are accurate;
- Responsible for producing regular reports and statistics on a daily, weekly and monthly basis
- In charge of overseeing the planned maintenance of vehicles, machinery and equipment.
- Ensures that proper record of goods are kept and warehouse does not run out of products
- Ensure that the warehouse facility is in tip top shape and goods are properly arranged and easy to locate
- Control beverage and carbonated soft drinks distribution and supply inventory
- Supervise the workforce in the warehouse floor.
Merchandise Manager
- Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Responsible for the purchase of beverages and carbonated drinks for the organizations
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
- Manage the organization website
- Handles ecommerce aspect of the business
- Responsible for installing and maintenance of computer software and hardware for the organization
- Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
- Manage the organization’s CCTV
- Handles any other technological and IT related duties.
Accountant/Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
Distribution Truck Drivers
- Assist in loading and unloading beverages and carbonated soft drinks
- Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment
- Assist the transport and logistics manager in planning their route according to a distribution schedule.
- Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
- Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
- Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Report defects, accidents or violations
Modus Operandi and Source of Supply
It is the duty of our merchandise manager or marketing manager to help the organization source for beverage manufacturing companies to help distribute their products. We will go out there to source for good wholesale distribution deals and also ensure that we do not only distribute at the right prices that will guarantee the organization good profit margin, but also, we will ensure that we distribute beverages that are in demand.
Once the deal is sealed, the drivers either load their trucks directly from the company or warehouse and then go around distributing it. Once the products are distributed, we will either collect money on delivery or we will go back later to collect our money. Usually there will be a business agreement with the beverage manufacturing companies and we can access credit based on our capacity.
The names of our major suppliers are;
- The Coca Cola Company
- PepsiCo Inc.
When it comes to available storage facilities, our warehouse is designed based on the requirements of our major suppliers and the zoning regulations of our location.
Professional and Advisory Support
Board of Directors
- Irwin Dickson – Chairman
- Irene Dickson (Mrs.) – Director
- Isabella Dickson – Director
- Maria Rosenberg – Director
- Collins Jones – Director
- McCain Greene – Secretary
Management Advisory Board
- Luke Sharpton
- Allen Shaun
- Cecelia Hall
Attorney – Bar. Felix Leighton (LLB, LLM)
Accountant – Deb Rosen
Insurance agent – Alliance Insurance Group
Banker – Platform™ Investment Bank, Inc.
6. SWOT Analysis
Our intention of starting out in Trenton and distribute our goods only within Trenton – New Jersey is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then start distributing all around the state.
We are quite aware that there are several beverage distribution companies all over Trenton and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Charlie & Tango Distribution Company®, LLC employed the services of an expert HR and Business Analyst with bias in retailing and distribution to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Charlie & Tango Distribution Company®, LLC;
Our location, the business model we will be operating on (robust distribution network), varieties of payment options, wide range of products from top brands and our excellent customer service culture will definitely count as a strong strength for us. Also our management team members are people who have what it takes to grow a business from startup to profitability with a record time.
A major weakness that may count against us is the fact that we are a new beverage and carbonated soft drink distribution business and we don’t have the financial capacity to compete with leaders in the industry for now.
- Opportunities:
The fact that we are going to be operating our business in Trenton – New Jersey provides us with unlimited opportunities to sell our goods to a large number of retailers and businesses. We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they patronize our products and services; we are well positioned to take on the opportunities that will come our way.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a similar business in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
Distribution of goods as wholesaler to retailers has been in existence for as long as human started trading goods, but one thing is certain, the distribution industry is still evolving. The introduction of technology has indeed helped in reshaping the industry.
Lastly, it is now a common phenomenon for distribution companies to leverage on technology to effectively predict consumer demand patterns and to strategically position their business to meet their needs; in essence, the use of technology helps businesses like ours to maximize supply chain efficiencies. Data collected from customers goes a long way to help beverage and carbonated soft drinks serve them better.
8. Our Target Market
The beverage and carbonated soft drinks industry has a wide range of customers; a good number of people on planet earth consume beverages and carbonated soft drinks and it is difficult to find people around who don’t.
In view of that, we have positioned our company to service businesses in Trenton – New Jersey and every other location. We have conducted our market research and we have ideas of what our target market would be expecting from us.
We are in business to retail (distribute) a wide range of beverages and carbonated soft drinks from different production companies to the following businesses;
- Retailers of beverages and carbonated soft drinks
- Restaurants
- Night clubs and bars
Our Competitive Advantage
A close study of the beverage and carbonated soft drinks industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are prepared to compete favorably with other leading supermarkets and grocery stores in Trenton – New Jersey.
Charlie & Tango Distribution Company®, LLC is launching a standard beverage and carbonated soft drinks distribution business that will indeed become the preferred choice of retailers, hotels, and restaurants et al in Trenton – New Jersey.
One thing is certain; we will ensure that we have a wide range of products available in our warehouse at all times. One of our business goals is to make Charlie & Tango Distribution Company®, LLC is a one stop beverage and carbonated soft drinks distribution company. Our excellent customer service culture, timely and reliable delivery services, online presence, and various payment options will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Charlie & Tango Distribution Company®, LLC is in business to retail a wide range of beverages from top beverage production companies to hotels, restaurants and retailers in Trenton – New Jersey. We are in the distribution industry to maximize profits and we are going to ensure that we achieve or business goals and objectives.
Our source of income will be the retailing (distribution) of a wide range of beverages at affordable prices. We will generate income for the business by;
10. Sales Forecast
One thing is certain when it comes to the distribution business, if your business is centrally positioned coupled with effective and reliable vans/trucks and distribution network, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are positioned to take on the available market in Trenton – New Jersey and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operations and grow the business and our clientele base.
We have been able to examine the beverage and carbonated soft drinks distribution industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Charlie & Tango Distribution Company®, LLC.
- First Fiscal Year: $240,000
- Second Fiscal Year: $450,000
- Third Fiscal Year: $750,000
N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products, home delivery services and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Charlie & Tango Distribution Company®, LLC, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for beverage and carbonated soft drinks retailers, hotels, and restaurants in Trenton – New Jersey.
We hired experts who have good understanding of the retailing and distribution industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Trenton – New Jersey.
In summary, Charlie & Tango Distribution Company®, LLC will adopt the following sales and marketing approach to win customers over;
- Open our business in a grand style with a party for all.
- Introduce our business by sending introductory letters alongside our brochure to beverages and carbonated soft drinks retailers, hotels, restaurants, households and key stake holders in Trenton – New Jersey
- Ensure that we have a wide range of beverages and carbonated soft drinks from different brands within and outside the United States at all times.
- Make use of attractive hand bills to create awareness business
- Position our signage/flexi banners at strategic places around Trenton – New Jersey
- Create a loyalty plan that will enable us reward our regular customers
11. Publicity and Advertising Strategy
Despite the fact that our beverage and carbonated soft drinks distribution business is well structured and well located, we will still go ahead to intensify publicity for the business. Charlie & Tango Distribution Company®, LLC has a long-term plan of opening distribution channels all around the state of New Jersey which is why we will deliberately build our brand to be well accepted in Trenton before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Charlie & Tango Distribution Company®, LLC;
- Place adverts on community based newspapers, radio and TV stations
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Trenton – New Jersey
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Contact beverage and carbonated soft drinks retailers, hotels, restaurants, night clubs and bars by calling them up and informing them of Charlie & Tango Distribution Company®, LLC and the products we sell / distribute
- Advertise our grocery home delivery services business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and distribution vans / trucks and ensure that all our staff members wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Pricing is one of the key factors that gives leverage to distribution companies and retailers, it is normal for retailers to purchase products from distribution companies that they can goods at cheaper price. We will work towards ensuring that all our goods are distributed at highly competitive prices compared to what is obtainable in the United States of America.
We also have plans in place to discount our goods once in a while and also to reward our loyal customers from time to time.
- Payment Options
The payment policy adopted by Charlie & Tango Distribution Company®, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Charlie & Tango Distribution Company®, LLC will make available to her clients;
- Payment via bank transfer
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via POS machines
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
This is the key areas where we will spend our start – up capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Charlie & Tango Distribution Company®, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,500.
- The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 month at $1.76 per square feet warehouse facility in the total amount of $105,600.
- The total cost for warehouse facility remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for Start-up inventory (stocking with a wide range of beverages, and carbonated soft drinks) – $100,000
- Storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs – $5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost for the purchase of distribution vans / trucks – $25,000
- The cost of launching a website – $600
- The cost for our opening party – $7,000
- Miscellaneous – $10,000
We would need an estimate of $500,000 to successfully set up our beverage and carbonated soft drinks distribution business in Trenton – New Jersey.
Generating Funds/Startup Capital for Charlie & Tango Distribution Company®, LLC
Charlie & Tango Distribution Company®, LLC is a private business that is solely owned and financed by Charlie Tango and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Charlie & Tango Distribution Company®, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail / distribute our beverages and carbonated soft drinks a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Charlie & Tango Distribution Company®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Attached Documents
- Lease (or copies of proposal)
- Franchise agreement
- Purchase agreement
- Articles of Incorporation
- Partnership agreements
- Copies of business licenses and registrations required my us to conduct business
- Copies of contracts with third parties
Include details and studies used in your business plan; for example:
- Brochures and advertising materials
- Industry studies
- Blueprints and plans
- Maps and photos of location
- Magazine or other articles
- Detailed lists of equipment owned or to be purchased
- Copies of leases and contracts
- Letters of support from future customers
- Any other materials needed to support the assumptions in this plan
- Market research studies
- List of assets available as collateral for a loan
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How To Write A Business Plan for A Bank Loan (3 Key Steps)
Wondering how to create a business plan that will wow your banker.
You're not alone.
Most entrepreneurs see writing a business plan as a gargantuan task – especially if they've never written one before.
Where do you start?
How do you calculate the financials?
How can you be sure you're not making a mistake?
And if you need a business plan for a bank loan, getting this document right is absolutely essential.
So here's what we recommend: simplify the planning process by breaking the work up into manageable, bite–sized steps. That way, you can focus on one section at a time to make sure it's accurate.
Here's a quick overview of the step–by–step process we guide entrepreneurs through when they sign up for LivePlan.
Step 1: Outline The Opportunity
This is the core of your business plan. It should give loan officers a clear understanding of:
- What problem you're solving
- How your product or service fits into the current market
- What sets your business apart from the competition
There are three key parts to this step:
The Problem & Solution
Detail exactly what problem you are solving for your customers. How do their lives improve after you solve that “pain point” for them?
We recommend actually going out and chatting with your target audience first. That way, you can validate that you're solving a real problem for your potential customers.
Be sure to describe your solution in vivid detail. For example, if the problem is that parking downtown is expensive and hard to find, your solution might be a bike rental service with designated pickup and dropoff locations.
Target Market
Who exactly are you selling to? And roughly how many of them are there?
This is crucial information for determining whether or not your business will succeed long–term. Never assume that your target market is “everyone.”
For example, it would be easy for a barber shop to target everyone who needs a haircut. But most likely, it will need to focus on a specific market segment to reach its full business potential. This might include catering to children and families, seniors or business professionals.
Competition
Who are your direct competitors? These are companies that provide similar solutions that aim to solve your customers' pain points.
Then outline what your competitive advantages are. Why should your target market choose you over the other products or services available?
Think you don't have any competition? Think again. Your customers are likely turning to an indirect competitor that is solving their problem with a different type of solution.
For example: A taco stand might compete directly with another taco stand, but indirectly with a nearby hot dog vendor.
Boost your chances of securing a loan
See how LivePlan can help you write a fundable business plan
Step 2: Show how you'll execute
This is where the action happens! Here you'll get into the details of how you'll take advantage of the opportunity you outlined in the previous section. This part demonstrates to banks that you have a strong plan to achieve success.
The three main components of this step include:
Marketing & Sales Plan
There can be a lot of moving parts to this one, depending on your business model.
But most importantly, you'll need to fully explain how you plan to reach your target market and convert those people into customers. A few example of what should be included:
- Positioning strategy. What makes your business both unique and highly desirable to your target market?
- Marketing activities. Will you advertise with billboards, online ads or something else entirely?
- Pricing. What you charge must reflect consumer demand. There are a few models to choose from, including ‘cost–plus pricing’ and ‘value pricing.’
This is the nuts and bolts of your business. It's especially important for brick–and–mortar companies that operate a storefront or have a warehouse.
You may want to explain why your location is important or detail how much space you have available. Plan to work at home? You can also cover your office space and any plans to move outside your house.
Any specialized software or equipment and tools should also be covered here.
Milestones & Metrics
Lenders and investors want to be confident that you know how to turn your business plans into financial success. That's where your milestones come in.
These are planned goals that help you progress your company. For example, if you're launching a new product your milestones may include completing prototypes and figuring out manufacturing.
Metrics are how you will gauge the success of your business. Do you want to generate a certain level of sales? Or keep costs at a certain level? Figuring out which metrics are most important and then tracking them is essential for growth.
Step 3: Detail your financial plan
This is the most crucial – and intimidating – part of any business plan for a bank loan. Your prospective lender will look especially close at this section to determine how likely your business is to succeed.
But the financial section doesn't have to be overwhelming, especially if you break the work into smaller pieces. Here are 3 items that your plan must have:
Simply put, this is your projections for your business finances. It gives you (and the bank) an idea of how much profit your company stands to make. Just a few items you'll need to include:
- Revenue. List all your products, services and any other ways your business will generate income.
- Direct costs. Or in other words, what are the costs to make what you sell?
- Personnel. Salaries and expenses related to what you pay yourself, employees and any contactors.
- Expenses. Things like rent, utilities, marketing costs and any other regular expenses.
Exactly how will you use any investments, loans or other financing to grow your business? This might include paying for capital expenses like equipment or hiring personnel.
Also detail where all your financing is coming from. Lines of credit, loans or personal savings should be listed here.
Bankers will be giving this section a lot of attention. Here's what you'll need:
- Profit & Loss. This statement pulls in numbers from your sales forecast and other elements to show whether you're making or losing money.
- Projected Balance Sheet. This is likely the first thing a loan officer will look at: it covers your liability, capital and assets. It provides an overview of how financially sound your business is.
- Projected Cash Flow. Essentially, this statement keeps track of how much money you have in the bank at any given point. Loan officers are likely to expect realistic monthly cash flow for the next 12 months.
Don't forget the Executive Summary
The Executive Summary is the first section of your business plan, but we recommend you tackle it last.
It's basically an introduction to your company, summarizing the main points of your plan. Keep it to just one or two pages and be as clear and concise as possible.
Think of it as a quick read designed to get the lender excited about your business.
If you need help writing your plan
Not everyone feels confident writing a business plan themselves, especially if it's needed to secure a bank loan.
And although you don't need an MBA to write one, getting your business plan right often does require quite a bit of work. So if you need help writing your plan, here are two options to consider:
- Hire a professional business plan writer to do it for you. This is typically the most expensive route, but worth it if you're pursuing $100,000 or more in capital.
- Sign up for LivePlan. It's business planning software that walks you through a step–by–step process for writing any type of plan. It's an affordable option that also gives you an easy way to track your actuals against your business plan, so you can get the insights you need to grow faster.
LivePlan makes it easy to write a winning business plan
No risk – includes our 35-day money back guarantee.
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How to Write a Business Plan for Loan with Free Template
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A business plan for bank loan is instrumental in getting a loan and funding for your business. When you approach the lenders or investors with a proper business plan , you increase your chances of getting a loan for your business plan.
Wondering how to write a business plan for a loan that could get you approved? Read our guide on the topic, check the business plan sample for bank loan, and use our business plan for loan template to make a killer business plan.
Free Download Business Plan for Loan Template
Make business plan for loan quick and easy, use this business plan template for loan.
Why Do You Need Business Plan for Bank Loan?
A business plan clears your mind about business, helps you prepare for it, and makes you a good candidate for loans, funding, and investments. In short, writing a business plan for a loan is worth it.
A Business Plan Helps You Get Loans and Funding
When you present your business idea before investors and lenders (or anyone else you are looking to for funding), you look serious with a business plan.
You may not need a book in the name of a business plan but you need to present your business idea in a convincing way.
When they know your business idea is sound and you can return the loan, they will be inclined to give you a loan.
A Business Plan Increases Your Chances of Business Success
A research on the impact of business planning shows that the businesses that start with proper planning have more chances of success.
A business plan helps both the new firms and the established firms.
A Business Plan Helps you Grow Strategically
A business plan is a road-map for your business growth, whether you use it as a roadmap or not. When you put effort into making a business plan, you set priorities, establish goals, create a strategy for achieving those goals, and set a time frame for achieving those goals.
A Business Plan Helps You Measure Business Growth
The market conditions will never be exactly the same as you had expected in the business plan.
Here, your business plan will help you compare planning against actual developments. You can see if you are going in the right direction as you planned or you need to change course.
Maybe you need to make a new business plan as your business might take a different shape than you expected.
What is included business plan for bank loan?
A business plan starts with an executive summary that briefly describes the business idea and ends with the appendix that includes lengthy financial documents or other reference materials.
These are the parts of a business plan.
- Executive Summary
- Business Overview
- Business Objectives and Goals
- Competitor Analysis
- Market Analysis
- Product and Services
- Operational Plan
- Business Structure and Management
- Financial Analysis
- Marketing and Sales
Process of Writing a Business Plan for a Bank Loan
Let’s see what you will write in each of the above-listed sections of the business plan for loan.
Executive Summary: Write this section after you have completed the business plan. Briefly discuss your business idea and its parts.
Business Overview: Include basic details about your business like business name, address, year established, etc.
Business Objectives and Goals: Discuss what are the short-term and long-term business goals and how do you plan to achieve them.
Competitor Analysis: Conduct an analysis of your direct and indirect competitors. A SWOT analysis of your competitors can help you identify opportunities for creating your competitive advantage.
Market Analysis: Discuss market conditions in your industry. Is your target industry seeing a growth trend or a decline? What are the driving factors for growth in your industry?
Product and Services: Introduce the products and services of your business, how your product or service works, how you will price them, and what is your sales and distribution strategy for your products or services.
Operational Plan: Explain your operation plan and discuss how you plan to run your business. The operation plan will discuss organizational structure, team working, and almost all aspects of business operations.
Business Structure and Management: Introduce business managers and key employees here. Also briefly discuss the legal structure of your business like if you are C-corp, S-corp, LLC , etc.
Financial Analysis: Discuss initial business costs, running cost, business break even cost, the amount of funding you need and how you will spend that funding. Also create a financial forecast for your business.
Marketing and Sales: This section will include the marketing and sales plan for your products or services.
Try to make it detailed so that the bank or your lender can understand how you will make your business profitable and if you will have solid capacity to pay back the loans.
Appendix: Anything you didn’t or couldn’t mention in the previous business plan sections will go here. For example, you can include extended financial reports, research about your industry, detailed CVs of your team and management, etc.
How to create a business plan for a loan with a Free Template?
A template is an easy and straightforward way to write a business plan. A template gives you step by step instructions on what each business section is about and how to write it.
Wisebusinessplans offers business plan for bank loan template that guides you with questions in every section of the business. Simply answer the questions in each section and your business plan will be ready in no time.
These are the steps to writing a business plan for small business loan with a template:
Collection Business Information : Make business information available, keep business documentation at hand as you will need to use data from these documents.
Write Business Plan : Proceed with writing the business plan. You will not stop until you reach financial analysis.
Prepare Financial Projections : When you are applying for a debt, the lender will most closely look at your financial projections. Take your time to write financial projections. Make sure you sound convincing.
Also, don’t bury information in the spreadsheets or too much data. State inference you draw from the data first, include necessary financial projections in the business plan and put the rest of them into the business plan appendix.
Proofread and Revise : Business plan is a thorough document. It is highly likely to leave some holes in the first draft. Proofread your business plan at least once to check for language and factual mistakes. You also come up with a new and better way of saying something.
Get Second Opinion : Engage a trusted friend, or family member, or an advisor and get their opinion on your business plan. Their unique perspective will force you to improve it,
Sample Of Business Plan For Loan And Funding
Want to see a sample on the quest of ‘how to make a business plan for a loan’, check the link below.This business plan for bank loan example will help you see how an actual business plan for a bank looks like and what is the end-product you are working towards.
Business Plan for Loan
Get this simple business plan template and make better business plan
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How to Write an SBA Business Plan — SBA Template and Checklist
Applying for an SBA loan for your business requires preparation. You need to gather paperwork not only on your personal finances but on your business history and your projections for the future .
For most SBA loans, you’ll need to put together a business plan—one that shows how funds will be used and how the business will repay the loan over time. While this is not too different from a traditional business plan, there are some important details that you’ll need to pay attention to.
Here’s what you need to know about SBA business plans and how you can maximize your chances for approval.
What is an SBA loan?
SBA loans are loans that are issued by banks and credit unions, but backed by the US Small Business Administration—the SBA. That means that if you default on your loan, the government helps repay the bank that issued the loan.
The SBA requires personal guarantees from anyone that owns at least 20% of the business. This means that when you get an SBA loan, you are putting your personal assets on the line in the event that your business can’t repay the loan.
SBA loans are also typically targeted at businesses that have at least 2 years of history and strong financials. If your business is a startup or is struggling, an SBA loan may not be the right fit for you.
Despite the personal guarantee requirement, SBA loans are a popular way for small businesses to fund growth and expansion. For more on SBA loans, read our complete guide .
Why you need a business plan for SBA loans
SBA loans require a good amount of documentation on both your business and your personal finances. You’ll need to pull together your past tax returns, bank statements, and various application forms depending on the type of SBA loan you apply for.
Beyond gathering information about the past, the bank that is issuing the loan is going to want to know about the future of your business. They’re going to want to see how the loan is going to get used, and that your future cash flow projections indicate that your business will be able to afford loan payments.
That’s where an SBA business plan comes in. In addition to all the other documentation required for the loan, you’ll need to produce a business plan to accompany the rest of the loan application.
Not only will your business plan describe your business to your lender, but it will also have the financial projections that the bank is going to need to help determine if you qualify for the loan.
How long does an SBA business plan need to be?
The SBA doesn’t have an official recommended or required business plan length. As a general rule of thumb, though, you should try and make your business plan as short and concise as possible . Your business plan is going to be read by a bank loan officer and they are going to be less than excited about the prospect of reading a 50-page business plan.
If possible try and keep the written portion of your business plan between 10-15 pages. You’ll then also have your financial forecasts that will take up several pages.
A great way to start your business plan is to start with a simple, one-page business plan that provides a brief and compelling overview of your business. A good one-page plan is easy to read and visually appealing. Once you have your one-page plan, you can expand on the ideas to develop your complete written business plan and use the one-page plan as your executive summary.
Loan officers will appreciate a concise overview of your business that provides the overview they need before they start taking a look at your financial plan and your complete business plan.
How to write a business plan for your SBA loan application
Like any good business plan, a business plan for an SBA loan will cover the fundamentals:
1. Executive summary
A one-page overview of your business plan and how much money you’re looking to borrow.
2. Business opportunity
A description of the business you’re in and the problem you solve for your customers.
3. Market analysis
An overview of your target customers and your competition.
4. Sales & marketing plan
A summary of how you sell your product or service and how you market to your target customers.
5. Financial forecast
Anywhere from 3 to 5 years of financial projections, including sales, expenses, and cash flow.
Check out our complete business plan outline to ensure you have everything you need to write your plan.
How to improve your chances of being approved for an SBA loan
Beyond the basics, though, your SBA business plan needs to include a focus on the loan you are applying for and how that will impact your business financially. Make sure to include the following in your financial plan to increase your chances of success with your lender:
Loan amount
In your executive summary, be sure to document how much money you are asking for. It’s best to put your number out upfront rather than trying to bury it deep within your business plan.
The specific terms of SBA loans are negotiated between the borrower and the lender. However, most SBA-backed loans have a maximum loan amount of $5 million while SBA Express loans have a maximum loan amount of $350,000.
Cash flow forecast
Be sure to include the loan in your cash flow projections. Show when you anticipate receiving the loan and how that will impact your finances over time. Your cash flow forecast will also show loan payments for the life of the loan. Having this prepared upfront will not only increase the chances of your application being approved but will make it much easier to manage the loan after you receive funding .
Balance sheet
You’ll also want to show the loan on your projected balance sheet as well as how the loan gets paid down over time. The money that you owe will show up on your balance sheet as a liability while the cash that you received from the loan will show up as an asset. Over time, your forecasted balance sheet will show that the loan is getting paid back. Your lender will want to see that you have forecasted this repayment properly.
Profit & Loss forecast
Your P&L should include the interest expenses for the loan and show how that will impact your profitability in the coming months and years.
Use of funds
In addition to your financial forecasts, you should also include a description of how you plan to use the loan and what aspects of your business you will be investing in. Some SBA loans are specifically for expanding export businesses or for funding real estate transactions, so make sure your use of funds description is appropriate for the loan you are applying for.
Increase your chances of success with a business plan
A good SBA business plan will increase your chances of success with your lender. Of course, you’re going to also need the required assets for the personal guarantee and your business is going to need to be in good shape overall. But, a business plan that clearly explains your business and has solid financial projections will help your bank decide whether they will issue an SBA loan to you.
If you’re struggling to put together a business plan for an SBA loan, you may want to explore a business planning tool like LivePlan. With LivePlan , you get step-by-step guidance to develop a beautifully designed, SBA-approved business plan that provides everything investors need to evaluate your business.
Noah Parsons
Noah is currently the COO at Palo Alto Software, makers of the online business plan app LivePlan. You can follow Noah on Twitter .
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Loan Officer Business Plan Template
Download this loan officer business plan template design in word, google docs, apple pages format. easily editable, printable, downloadable..
Looking to create a business plan specifically made for a loan officer in your lending institution? Look no more, as we’ve got you covered with our Loan Officer Business Plan Template. This will help you to become an effective loan officer and increase your skills in mortgage negotiations. Also, this template will help you through the process of becoming an expert loan officer. If that wasn’t enough, this is not just limited to your desktop computer because you can edit and download it on different devices as well. Be the expert you want to be on this field by utilizing this Loan Officer Business Plan Template immediately!
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What is a business plan.
A Business Plan is a written document that describes your core business objectives and how you plan to achieve them over a set period of time. It is designed to help you, and others, understand how you plan to generate money and make your business sustainable. A Business Plan often includes information about your goals, strategies, marketing and sales plans and financial forecasts. Read on below for more information about the key sections of a Business Plan.
Download your copy of the Business Plan template now. The document includes a Personal Survival Budget template and a Cash Flow Forecast template, which are also required for your application:
The guide is an annotated version of the Business Plan template with notes from our Business Advisers about what type of information, examples and evidence to include in order to help us understand you and your business. While we encourage you to use this Business Plan template, it is not mandatory and you are welcome to submit your own Business Plan template provided it details similar information.
Please note, the following documents should open on any device with a document viewer and editor but for the best user experience, we recommend editing this Business Plan template on a desktop.
Why is a Business Plan important?
There are many great reasons why it is worth your time creating a Business Plan – even if you’re not quite ready to apply for a Start Up Loan. Here are just seven:
A Business Plan:
- Provides a structured way of organising your thoughts and clarifying your idea.
- Helps you set out your goals and spot any potential problems in achieving these goals.
- Gives you a clear strategy to follow when things get busy.
- Is often essential for securing external finance for your business (and is required if you’re applying for a Start Up Loan).
- Allows you to measure your progress as you go along.
- Ensures all of your team are working towards the same vision.
- Helps you plan for the future.
Key sections of a Business Plan:
A Business Plan can include whatever information you feel is required to best convey how you are planning to make your business sustainable and, when it comes to applying for a Start Up Loan, the following are the core sections we require.
Your business and key objectives: A brief description of your business and its core products or services. This section also includes a clear and concise overview of the goals your business is trying to achieve over a set period of time. Sometimes these are broken down as short, mid and long-term goals, but it helps if they’re measurable (how will you know if you have achieved this?) and realistic (can you achieve this with the money, resources and time you have?).
If you are applying for a Start Up Loan, you will of course also need to detail how you intend to use the money if you’re successful. Our Loan Assessment team will want to see that the Start Up Loan will support your overall business objectives.
Your skills and experience: An overview of your experience as it relates to your business. If you’ve previously worked in a similar business, or have experience running another business, this will help provide confidence that you are in a good position to start up. Even if this is all brand new to you, think about any transferable skills you’ve developed, life experiences you’ve had or training you’ve completed that may be useful.
Your target customers, market and competition: A summary of key insights that demonstrate you have a strong understanding of your customers (and how to identify them), your market (and how to position yourself within it) and your competitors (and how to differentiate yourself from them on factors like price, quality, brand etc).
Your sales and marketing plans: This section is all about how you are planning to attract customers. You might include information about where you’ll distribute your products, what your branding and logo will be and what pricing you’ll apply. Additionally, you will need to demonstrate how you will spread the word about your product/services in order to generate demand, such as using social media, exhibiting at a trade conference or investing in online advertising.
Your operational plans: This will be different depending on your business model, but may include information on where you’ll trade (like a home office or external premises), the number of staff you’ll need to employ, what their roles will be and any equipment or tools you’ll need to run your business. You can also use this section to detail any processes that are important to your operations, as well as any industry, tax or legal regulations related to your business. It’s also good to think about any risks you may face, how you will overcome them and what you will do if things don’t go to plan.
Financials Many business plans include a financial section, which outlines how you’ll fund all of the activities you’ve outlined and what revenue you expect to generate. Because we ask you to complete a Cash Flow Forecast as part of your Start Up Loan application, we don’t require too much detail on this in your Business Plan. Rather, these two documents should be complementary.
Check out our Cash Flow Forecast guide and template >>
Writing a Business Plan – our top tips:
The tips below have been prepared by our Business Advisers and Loan Assessment team to help you understand some of the key things that will strengthen your application. For more in-depth advice, read our guidelines on how to write a Business Plan .
- Demonstrate that you understand your market and customer. For our Loan Assessment team to feel comfortable that your business plans are viable, they will want to see that there is a market who wants and needs your product/service, that you have thought about how you’ll set yourself apart from competitors and that you know how to attract your customers. Any market research you can do, like a simple online survey, looking up industry reports or interviews with potential customers will help.
- Use evidence and examples to back up any statements you make. It’s always more powerful when you can prove what you’re saying with hard facts, whether it’s with a strong statistic, a customer quote, examples of similar activity or other research. It doesn’t have to be detailed – sometimes it will be sufficient to include a link to further information – but it will help our loan assessment team feel more confident that your business plan is viable.
- Make sure everything ties together by linking every strategy to your core objectives. The purpose of a Business Plan is to show what your goals are and how you’re going to achieve them so remember to put your objectives at the heart of your plan. For example, if one of your goals is to generate 10 new sales per month, then in your marketing section you’ll need to think about how many sales each promotional channel needs to deliver in order to support this objective.
- Consider any risks you face and how you will overcome them. Every business has risks so don’t shy away from referencing these in your business plan. Demonstrating that you are aware of your key risks. Having a clear plan for how to reduce or overcome these is something that will set your business plan apart and give our loan assessment team confidence that you’re ready for the challenge.
- Be as clear and concise as possible and avoid waffle. Remember, we’re not looking to see every single detail about how your business will operate, rather we just need to know enough information to give us confidence that you have a clear plan in place. You might like to use bullet points, graphs, tables and subheadings to help you keep your content focused and help you avoid the temptation to go into too much detail.
- Presentation matters: proof read, review and format your document. As with most things in life, first impressions count. Use clear headings, structure your document in a clear order and check you’ve used consistent fonts throughout. Remember, you don’t have to be a writer or a designer to prepare a professional looking document. Most importantly, double check that you haven’t made any spelling or grammatical errors. It can be a good idea to have someone proof read your work for you once you’re finished to pick up anything you might have missed.
Learn new skills
Start Up Loans has partnered with the Open University to offer a range of free courses.
A Business Plan can include whatever information you feel is required to best convey how you are planning to make your business sustainable and, when it comes to applying for a Start Up Loan, the following are the core sections we require (our Business Plan template includes them).
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10 Free Business Plan Template in word You Can Download Right Now
A free Office suite fully compatible with Microsoft Office
Are you in the process of starting a new business? If so, you will need a free business plan template in word. This document is essential for outlining your business goals and strategies. A business plan can be quite complex, but don't worry - we have you covered.
In this blog post, we will provide 10 free business plan templates in word that you can download right now. Plus, we will discuss these free business plan templates in word that you may need to create depending on your business. Let's get started!
1. Business Project Plan
This free business plan template in word doc is a comprehensive assessment of a business project from start to finish, outlining goals and objectives.
2. Business Career Plan
This free business plan template in word doc is strategic plan to help guide your career path and achieve success.
3. Simple Business Itinerary Plan
Simple Business Itinerary Plan - An easy-to-follow guide to track management, tasks and progress.
4. Sales and Marketing Plan
Sales and Marketing Plan - A detailed plan to optimize marketing efforts and increase sales.
5. Work Report and Plan
Work Report & Plan - An organized report that tracks your team's progress, performance and timeline. This free business plan template in word also allows you to set goals and objectives, identify key tasks, track project milestones and manage resources.
6. Business Project Plan
Business Project Plan - A comprehensive approach to planning a project from start to finish. This free business plan template in word which is available online helps you define the scope of your project, set achievable milestones and create a timeline for success.
7. Career Plan for College Students
Career Plan for College Students - A focused plan to help college students prepare and reach their goals.
8. Simple Green Plant Letter
This free business plan template in word is a template that outlines the principles of green business practices and sustainability.
9. Simple Sales Plan
Simple Sales Plan - A step-by-step guide to a successful sales process, from establishing relationships to closing deals.
10. Kindergarten Lesson Plan
Kindergarten Lesson Plan - A comprehensive plan for teaching kindergarteners at home or in the classroom.
For any entrepreneur, creating a business plan is vital. Thankfully, there are many free business plan templates in word are available to help you get started. From project plans and career maps to sales plans and kindergarten lesson plans, these free business plan templates in word will make it easier for you to outline your vision and bring it to life. With the right tools and resources in place, you can take the first steps towards achieving success with your business. Start planning today and take control of your future!
Start today and make your dreams become a reality.You can accomplish your objectives with the appropriate planning! Good luck!
If you're ready to get started creating your business plan, take advantage of WPS Office 's free business plan templates in word and get a head start on achieving success. With an easy-to-use interface and powerful features, you'll have the tools you need to create the perfect business plan. Free download WPS Office for free today! Start now to take charge of your future! Best of luck!
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Business plan template
Our free business plan template is part of a kit put together to help you define who you are, describe your business, and document how you will be profitable.
Your business plan is not only a necessity when seeking financing for your project, it is a recognized management tool that outlines exactly what your company will do and how it plans to succeed.
Your business plan should include
- Business overview: A brief description of your company and where it stands in the marketplace;
- Sales & marketing plan: The sales & marketing strategies that will be used to target your customers;
- Operating plan: A description of the physical aspect of your business operations;
- Human resources plan: Details on your key staff, HR policies & procedures;
- Action plan: The planned actions of the business over the next 2 to 3 years;
- Executive summary: A summary of the reasons you are seeking financing, together with a summary of your business operations;
- Financial appendix: The facts and figures that back up what you say in your plan.
BDC’s free business plan template designed to help Canadian entrepreneurs
As a development bank, BDC has been working with entrepreneurs for over 65 years to develop business plans that help them succeed. Our business plan template is designed to allow you to prepare a professional plan, and take your business to the next level toward growth and success.
What does our kit include:
- Blank business plan template with financial appendix, including a user guide and glossary.
- An example business plan.
- Instructions and how-to articles.
Fill in the form to get your template. It’s 100% free.
Terms and conditions.
We allow you to use these templates only as part of your business activities, but we do not guarantee that they fit your needs.
Unfortunately, we do not offer any assistance.
You are responsible for the content of the documents you create using these templates. We are not responsible for the value or accuracy of these documents, nor for the damages resulting from their use.
If you do not agree with what you just read, do not use the templates.
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Small Business Loan Agreement
Create a high quality document online now!
Updated February 21, 2023
A small business loan agreement is a contract between a small business borrower and a money lender. Small business loans generally accrue interest. The lender commonly requests security to be included in the note in the event of the borrower’s default (such as equipment or other assets).
Commonly Used For
- Buying inventory;
- Hiring employees;
- Purchasing equipment;
- Real estate; and
- Renovations.
Minimum Requirements
- 680 credit score;
- Two (2) years in business;
- Minimum $50,000 annual revenue;
- Collateral (equal to the loan amount); and
- Owner’s personal guarantee.
How to Get a Small Business Loan (5 steps)
- Gather Your Documents
- Determine How Much to Borrow ($)
- Apply to Lenders
- Obtain Offers
- Receive Funds
Step 1 – Gather Your Documents
Lenders will want to ensure they are not lending money to a failing business. Therefore, the borrower should gather the following items:
- Bank Statements (past 12 months)
- Tax Filings (past 2 years)
- Balance Sheet (profit and loss statement)
- List of Company Assets
Step 2 – Determine How Much to Borrow ($)
Some lenders will allow a borrower to obtain more cash than needed even if it becomes a debt trap. Therefore, it is advised that a borrower seeks no more than 1.25x its revenue to expenses ratio.
If a business is generating $12,500 /mo and its expenses are $6,000 /mo. The business should not borrow more than the equivalent of $4,000 /mo in loan repayments ($10,000/mo total).
$12,500/mo in revenue with $10,000/mo in expenses would be a 1.25 revenue to expenses ratio.
Step 3 – Apply to Lenders (5)
To obtain money as fast as possible, the best option is to go through a trusted online lender.
The top 5 online recommended services are:
- SBA.gov (Small Business Administration)
- Fundera.com
- LendingTree.com
Step 4 – Obtain Offers
After applying, loan offers should be received within 24 hours. There may be following up questions or additional information needed to complete the financial profile for the lender.
After deciding which lender has the best terms and lowest interest rate, it’s time to sign a small business loan agreement and take the necessary steps to get the funds.
Step 5 – Receive Funds
After all the paperwork is signed, the funds should be disbursed to the borrower’s bank account. Once received, the loan will start with the borrower required to repay the debt in accordance with the payment schedule.
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Write a business plan
Download free business plan templates and find help and advice on how to write your business plan.
Business plan templates
Download a free business plan template on The Prince’s Trust website.
You can also download a free cash flow forecast template or a business plan template on the Start Up Loans website to help you manage your finances.
Business plan examples
Read example business plans on the Bplans website.
How to write a business plan
Get detailed information about how to write a business plan on the Start Up Donut website.
Why you need a business plan
A business plan is a written document that describes your business. It covers objectives, strategies, sales, marketing and financial forecasts.
A business plan helps you to:
- clarify your business idea
- spot potential problems
- set out your goals
- measure your progress
You’ll need a business plan if you want to secure investment or a loan from a bank. Read about the finance options available for businesses on the Business Finance Guide website.
It can also help to convince customers, suppliers and potential employees to support you.
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When will Supreme Court rule on Biden's student loan forgiveness plan? Here's what you need to know
- Now that the Supreme Court has heard oral arguments over Biden's student loan forgiveness plan, here's what borrowers can expect next.
- Experts say a decision may come by late June.
Now that the Supreme Court has heard oral arguments over student loan forgiveness, borrowers may be wondering: What's next?
Oral arguments last only a day, but the justices can take months to reach a decision, experts say. In an analysis of the last Supreme Court's term, higher education expert Mark Kantrowitz found that half of the decisions were issued in June.
For many borrowers, that may be an agonizing wait: More than 26 million people applied for the Biden administration's relief program before the U.S. Department of Education had to close its application portal amid legal challenges . The decision reached by the nine justices will determine whether those borrowers get up to $20,000 of their debt canceled.
More from Personal Finance: Biden's student loan forgiveness plan heads to Supreme Court How to decide if you should go back to school The cheapest states for in-state college tuition
"For many people, this is life and death," said Thomas Gokey, co-founder of the Debt Collective , a national union of debtors. "What's at stake is being forced to choose between paying for student loans or being able to buy groceries, make rent and pay medical bills."
Here's what borrowers need to know while they wait for the Supreme Court's ruling on student loan forgiveness.
Experts say the ruling could go either way
President Joe Biden's plan has faced at least six lawsuits since it was rolled out in August .
The nine justices on Tuesday considered two of those legal challenges : one from six GOP-led states —Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — and another backed by the Job Creators Network Foundation, a conservative advocacy organization.
Prior to the oral arguments, legal experts expected Biden's plan to face tough odds with the justices. However, they then lobbed praise on Solicitor General Elizabeth Prelogar , the lawyer who represented the Biden administration in front of the highest court, for her performance, and some changed their tune.
"The Biden administration now seems more likely than not to win the cases," Kantrowitz said.
University of Illinois Chicago law professor Steven Schwinn said Prelogar "knocked it out of the park."
"I do think she could have influenced or even changed the thinking of two justices, maybe more," he added.
The plaintiffs argued that the president doesn't have the power to wipe out $400 billion in student debt without the authorization of Congress. The government attorney defending the policy countered that the Education Department can make changes to the federal student loan system, including debt forgiveness, during national emergencies.
A top Education Department official recently warned that the public health crisis has caused considerable financial harm to student loan borrowers and that its debt cancellation plan is necessary to stave off a historic rise in delinquencies and defaults .
At times, the justices seemed skeptical that those emergency powers included the kind of sweeping loan forgiveness the president is trying to carry out. But they also seemed doubtful at points that the plaintiffs had successfully proven they'd be harmed by the plan, which is typically a requirement to have standing to sue.
Payment pause on federal student loans is still ongoing
Federal student loan payments have been on pause since March 2020, when the coronavirus pandemic first hit the U.S. and crippled the economy. When the bills restart depends on how long the Supreme Court justices take to issue a decision, Kantrowitz said.
The Education Department in November said the bills would resume 60 days after the litigation over its student loan forgiveness plan resolves.
If the legal issues with the administration's forgiveness plan are still unfolding by the end of June, or if it's not allowed to move forward with forgiving student debt by then, payments will pick up at the end of August.
If the justices allow student loan forgiveness to go through, many borrowers will never have to restart payments. According to a White House estimate, roughly 20 million people could have their debt entirely cleared under the president's plan.
"Sixty days will be enough to forgive student loan debt if the president's plan survives," Kantrowitz said. "They've already approved forgiveness for 16 million borrowers , so they just need to transmit this information to the loan servicers."
He added: "It should take one to two weeks for the servicers to implement."
A ruling against student loan forgiveness isn't the end
Experts say that should the justices rule against the student loan forgiveness plan, the Biden administration could look for other ways to deliver its relief. The administration also could try to keep the payment pause in place for longer while it figures out those next steps.
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You can search the web to find free templates to build your business plan. We discuss nine components of a model business plan here: Key partnerships Note the other businesses or services you'll work with to run your business. Think about suppliers, manufacturers, subcontractors, and similar strategic partners. Key activities
A business plan is a document that lays out a company's strategy and, in some cases, how a business owner plans to use loan funds, investments and capital. It demonstrates that a business...
Business Plan Template for Small Businesses, Startups, and Entrepreneurs This simple, modern, investor-approved business plan template is designed to make planning easy. It's a proven format that has helped over 1 million businesses write business plans for bank loans, funding pitches, business expansion, and even business sales.
Business Plan Template Here is a basic template that any business can use when developing its business plan: Section 1: Executive Summary Present the company's mission. Describe the company's product and/or service offerings. Give a summary of the target market and its demographics.
Download our Ultimate Business Plan Template here What Is a Business Loan? A business loan is funding that is provided by a financial institution to a company for it to carry out its day-to-day operational activities. It also supports the purchase of equipment, refinancing of debt, and other purposes.
With Growthink's Ultimate Business Plan Template you can finish your plan in just 8 hours or less! Click here to finish your Loan Officer business plan today. Competitive Analysis Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
This business loan proposal template managed to secure funds to over 16,000 clients! If you're unsure of how your business loan requests should look, simply use this completely customizable template and get ready to close the deal! You can change the text, images, colors, your logo - it's all 100% editable. View Template
Business plan templates Business plan templates Let these informative and polished templates guide you through creating your business plan. Business plan presentation PowerPoint Business plan (Design) Word Business Plan Word Small business startup checklist Word Professional services marketing plan PowerPoint Home business startup checklist Word
5 Steps to Draft a Business Loan Proposal 1. Business Loan Proposal Template 2. Restaurant Loan Proposal Template 3. Sample Loan Proposal Template 4. Business Loan Proposal Example 5. Business Loan Proposal Template 6. Business Loan Proposal in PDF 7. Sample Loan Proposal in PDF 8. Business Loan Proposal Format 9.
A strong business plan for a loan application will include the following elements: Cover Page and Table of Contents Executive Summary Company Description Market Plan and Analysis Organization and Management Service or Product Marketing and Sales Financing Analysis Funding Request Appendix
Loan Proposal for Charlie & Tango Beverage Distribution Company®, LLC. 1. Industry Overview Charlie & Tango Beverage Distribution Company®, LLC is seeking to: (a) Convert existing short-term notes of $165,000 to a long-term note to be repaid at $3,000 per month (plus interest).
Here are 3 items that your plan must have: Forecast Simply put, this is your projections for your business finances. It gives you (and the bank) an idea of how much profit your company stands to make. Just a few items you'll need to include: Revenue. List all your products, services and any other ways your business will generate income.
Simply answer the questions in each section and your business plan will be ready in no time. These are the steps to writing a business plan for small business loan with a template: Collection Business Information: Make business information available, keep business documentation at hand as you will need to use data from these documents. Write ...
A one-page overview of your business plan and how much money you're looking to borrow. 2. Business opportunity. A description of the business you're in and the problem you solve for your customers. 3. Market analysis. An overview of your target customers and your competition. 4. Sales & marketing plan.
Business finance templates Plan and track your business finances with these comprehensive templates Share. Money in Excel Excel Small business startup checklist Word ... Loan amortization schedule Excel Business monthly budget Excel Business expense budget Excel Business Financial Plan Excel ...
Loan Officer Business Plan Template Download this Loan Officer Business Plan Template Design in Word, Google Docs, Apple Pages Format. Easily Editable, Printable, Downloadable. Looking to create a business plan specifically made for a loan officer in your lending institution?
Download your copy of the Business Plan template now. The document includes a Personal Survival Budget template and a Cash Flow Forecast template, which are also required for your application: Download Template (.xlsx) Download Guide (PDF) Learn new skills Start Up Loans has partnered with the Open University to offer a range of free courses.
1. Business Project Plan. This free business plan template in word doc is a comprehensive assessment of a business project from start to finish, outlining goals and objectives. 2. Business Career Plan. This free business plan template in word doc is strategic plan to help guide your career path and achieve success. 3.
BDC's free business plan template designed to help Canadian entrepreneurs. As a development bank, BDC has been working with entrepreneurs for over 65 years to develop business plans that help them succeed. Our business plan template is designed to allow you to prepare a professional plan, and take your business to the next level toward growth and success.
Washington. Create Document. Updated February 21, 2023. A small business loan agreement is a contract between a small business borrower and a money lender. Small business loans generally accrue interest. The lender commonly requests security to be included in the note in the event of the borrower's default (such as equipment or other assets).
Business plan templates. Download a free business plan template on The Prince's Trust website. ... You'll need a business plan if you want to secure investment or a loan from a bank.
This template is 100% customizable in the FREE version of Canva. This means that you will be able to easily add in your own information, photos, and can change the fonts, colors, etc. to fit your own style. No software required, access your templates on any device (Phone, Computer, Tab). DIRECTIONS TO ACCESS YOUR PURCHASE: 1.
The Supreme Court agreed to hear two challenges against President Joe Biden's unprecedented plan to cancel up to $20,000 in student debt for tens of millions of Americans. Six Republican-led ...
Experts say a decision may come by late June. A sign calling for student loan debt relief is seen in front of the Supreme Court as the justices are scheduled to hear oral arguments in two cases ...