Small Business BC

Resources for entrepreneurs to start and grow successful businesses.

Accédez la page d'accueil dédiée aux ressources en française de SBBC

Utilisez notre outil de traduction pour le site entier

10 Tips for What a Lender Looks for in a Business Plan

Get Started on your business plan by downloading Small Business BC’s Business Plan Template and Cashflow Forecasting Tool.

Download Now

Are you ready to turn your inspirational business vision into action? Once you spot an opportunity that you simply can’t pass up, there are calculated steps to turn your vision into reality, and finding financing is usually at the top of the list. Whether you need to borrow $5,000, $50,000, or $500,000, the tips in this article will help you understand what a lender looks for in a business plan.

Tip 1: Third Party Review

Before you start looking around for a lender, you need to write a business plan, and you need to have it reviewed by a business advisor or a mentor, such as Small Business BC. As an independent third party, they will help you focus on areas that are most important to a lender. Warning: these may not be areas that you’re most interested in! As an entrepreneur, you probably have a high tolerance for risk. But most lenders are the opposite. They love numbers, figures, and concrete research that show business viability.

Tip 2: Be Clear About What You are Selling

Your marketing plan needs to show the lender that you’re clear about what you’re selling, who’s going to buy it and why and how you’re going to reach those buyers. Explain what you’re selling in plain English. This may seem obvious, but a lot of plans leave lenders guessing what the product or service being sold is, or why anyone would buy it.

Tip 3: Explain About the ‘Who’

Tell the lender about the ’who‘: Who your customers will be, how much they’ll spend, and why they’ll buy from you. Tell the lender who your suppliers are, and if you have signed contracts or letters of intent to purchase. Who are your main competitors? And what makes your business different or better than theirs? Present your prospective lenders with a fresh take on a tired industry, and you will grab their attention.

Tip 4: Know Your Industry

Convince the lender that you really know your industry. You need to prove that there’s a demand for your product or service, so be sure to show that you’ve researched and understand the key trends in your industry.

Tip 5: Know How Much Money You Need

This may seem obvious, but know how much you need, versus how much you want; there is a difference. And, for what purpose?

For example, are you purchasing equipment or are you managing cash flow?  Tell the lender how you plan to repay the loan. You need to show how you plan to generate enough revenue to cover your operating expenses plus pay the lender back.

Tip 6: Identify Your Assumptions

Clearly identify all the assumptions in your business plan. Assumptions are the details about your start-up costs, such as how much you’ll invest in marketing, or how much inventory you need to have on hand. Some may be estimates, but you need to demonstrate that you’ve thought about all the little details.

Tip 7: Show Your Own Investment

Lenders want to see that you have enough confidence in your success to risk your own money before they’ll risk their members’ or shareholders’ money.  And most lenders will want to see your investment (or equity) of at least 10% of what you need in your financial projections.

Tip 8: Cash Flow, Cash Flow, Cash Flow

Over 90% of declined loan applications are declined because the cash flow projections don’t convince the lender that the business will make enough to repay the loan. Lenders need to see that your assumptions are supported by concrete evidence from the industry, your own past sales, or even your competition’s sales, if you can get those.

So, why is the tip “cash flow, cash flow, cash flow”? Because lenders want to see not one, not two, but three cash flow scenarios: one with conservative sales, one with realistic sales, and one with aggressive projections.

Tip 9: Demonstrate Your Team’s Qualifications

When a lender looks at the operations plan for your business, he or she wants to see proof that your management team will be able to run a successful and profitable business. Who’s running the show? Your operations plan is all about naming names. Tell the lender who’ll be doing what in your business, and what are their qualifications and track records.

Tip 10: Disaster Planning

Give your worst case scenarios, or what I like to call, “Disaster Planning”. It might sound strange, but you have to tell the lender how you’re going to handle the risk that no one will buy your product or service. A lender needs to see a contingency plan of how you would pay back the loan if your sales don’t meet expectations or if your expenses are higher than anticipated.  A well-developed and thoughtful business plan shows that you’ve thought through different scenarios and changing circumstances, which will give the lender significant confidence in your operations.

After digesting all of these tips, consider this last (and most important) piece of advice: Quite simply, the most effective business plans are ones that convey that  you want to make some money and have a good time while doing something you love.

Share this Story

Related articles:.

  • Five Tips for Becoming a Popup Market Vendor
  • Business Resources for Canadian Service Veterans
  • How to Secure Early Stage Financing
  • Sign up for eNews to get the latest SBBC updates:
  • Your Name * First Last

Note: you can withdraw your consent at any time - for more information see our Privacy Policy or Contact Us for more details.

  • Phone This field is for validation purposes and should be left unchanged.

We respectfully acknowledge our place of work is within the ancestral, traditional and unceded territories of the Xʷməθkʷəy̓əm (Musqueam), Sḵwx̱wú7mesh (Squamish) and səl̓ilwətaʔɬ/sel̓ílwitulh (Tsleil-Waututh) and that we serve the Peoples of the many Nations throughout British Columbia.

what lenders look for in a business plan

  • Search Search Please fill out this field.

Why Do I Need a Business Plan?

Sections of a business plan, the bottom line.

  • Small Business

How to Write a Business Plan for a Loan

How to secure business financing

Matt Webber is an experienced personal finance writer, researcher, and editor. He has published widely on personal finance, marketing, and the impact of technology on contemporary arts and culture.

what lenders look for in a business plan

A business plan is a document that explains what a company’s objectives are and how it will achieve them. It contains a road map for the company from a marketing, financial, and operational standpoint. Some business plans are more detailed than others, but they are used by all types of businesses, from large, established companies to small startups.

If you are applying for a business loan , your lender may want to see your business plan. Your plan can prove that you understand your market and your business model and that you are realistic about your goals. Even if you don’t need a business plan to apply for a loan, writing one can improve your chances of securing finance.

Key Takeaways

  • Many lenders will require you to write a business plan to support your loan application.
  • Though every business plan is different, there are a number of sections that appear in every business plan.
  • A good business plan will define your company’s strategic priorities for the coming years and explain how you will try to achieve growth.
  • Lenders will assess your plan against the “five Cs”: character, capacity, capital, conditions, and collateral.

There are many reasons why all businesses should have a business plan . A business plan can improve the way that your company operates, but a well-written plan is also invaluable for attracting investment.

On an operational level, a well-written business plan has several advantages. A good plan will explain how a company is going to develop over time and will lay out the risks and contingencies that it may encounter along the way.

A business plan can act as a valuable strategic guide, reminding executives of their long-term goals amid the chaos of day-to-day business. It also allows businesses to measure their own success—without a plan, it can be difficult to determine whether a business is moving in the right direction.

A business plan is also valuable when it comes to dealing with external organizations. Indeed, banks and venture capital firms often require a viable business plan before considering whether they’ll provide capital to new businesses.

Even if a business is well-established, lenders may want to see a solid business plan before providing financing. Lenders want to reduce their risk, so they want to see that a business has a serious and realistic plan in place to generate income and repay the loan.

Every business is different, and so is every business plan. Nevertheless, most business plans contain a number of generic sections. Common sections are: executive summary, company overview, products and services, market analysis, marketing and sales plan, operational plan, and management team. If you are applying for a loan, you should also include a funding request and financial statements.

Let’s look at each section in more detail.

Executive Summary

The executive summary is a summary of the information in the rest of your business plan, but it’s also where you can create interest in your business.

You should include basic information about your business, including what you do, where you are based, your products, and how long you’ve been in business. You can also mention what inspired you to start your business, your key successes so far, and your growth plans.

Company Overview

In this section, focus on the core strengths of your business, the problem you want to solve, and how you plan to address it.

Here, you should also mention any key advantages that your business has over your competitors, whether this is operating in a new market or a unique approach to an existing one. You should also include key statistics in this section, such as your annual turnover and number of employees.

Products and Services

In this section, provide some details of what you sell. A lender doesn’t need to know all the technical details of your products but will want to see that they are desirable.

You can also include information on how you make your products, or how you provide your services. This information will be useful to a lender if you are looking for financing to grow your business.

Market Analysis

A market analysis is a core section of your business plan. Here, you need to demonstrate that you understand the market you are operating in, and how you are different from your competitors. If you can find statistics on your market, and particularly on how it is projected to grow over the next few years, put them in this section.

Marketing and Sales Plan

Your marketing and sales plan gives details on what kind of new customers you are looking to attract, and how you are going to connect with them. This section should contain your sales goals and link these to marketing or advertising that you are planning.

If you are looking to expand into a new market, or to reach customers that you haven’t before, you should explain the risks and opportunities of doing so.

Operational Plan

This section explains the basic requirements of running your business on a day-to-day basis. Your exact requirements will vary depending on the type of business you run, but be as specific as possible.

If you need to rent office space, for example, you should include the cost in your operational plan. You should also include the cost of staff, equipment, and any raw materials required to run your business.

Management Team

The management team section is one of the most important sections in your business plan if you are applying for a loan. Your lender will want reassurance that you have a skilled, experienced, competent, and reliable senior management team in place.

Even if you have a small team, you should explain what makes each person qualified for their position. If you have a large team, you should include an organizational chart to explain how your team is structured.

Funding Request

If you are applying for a loan, you should add a funding request. This is where you explain how much money you are looking to borrow, and explain in detail how you are going to use it.

The most important part of the funding-request section is to explain how the loan you are asking for would improve the profitability of your business, and therefore allow you to repay your loan.

Financial Statements

Most lenders will also ask you to provide evidence of your business finances as part of your application. Graphs and charts are often a useful addition to this section, because they allow your lender to understand your finances at a glance.

The overall goal of providing financial statements is to show that your business is profitable and stable. Include three to five years of income statements, cash flow statements, and balance sheets. It can also be useful to provide further analysis, as well as projections of how your business will grow in the coming years.

What Do Lenders Look for in a Business Plan?

Lenders want to see that your business is stable, that you understand the market you are operating in, and that you have realistic plans for growth.

Your lender will base their decision on what are known as the “five Cs.” These are:

  • Character : You can stress your good character in your executive summary, company overview, and your management team section.
  • Capacity : This is, essentially, your ability to repay the loan. Your lender will look at your growth plans, your funding request, and your financial statements in order to assess this.
  • Capital : This is the amount of money you already have in your business. The larger and more established your business is, the more likely you are to be approved for finance, so highlight your capital throughout your business plan.
  • Conditions : Conditions refer to market conditions. In your market analysis, you should be able to prove that your business is well-positioned in relation to your target market and competitors.
  • Collateral : Depending on your loan, you may be asked to provide collateral , so you should provide information on the assets you own in your operational plan.

How Long Does It Take to Write a Business Plan?

The length of time it takes to write a business plan depends on your business, but you should take your time to ensure it is thorough and correct. A business plan has advantages beyond applying for a loan, providing a strategic focus for your business.

What Should You Avoid When Writing a Business Plan?

The most common mistake that business owners make when writing a business plan is to be unrealistic about their growth potential. Your lender is likely to spot overly optimistic growth projections, so try to keep it reasonable.

Should I Hire Someone to Write a Business Plan for My Business?

You can hire someone to write a business plan for your business, but it can often be better to write it yourself. You are likely to understand your business better than an external consultant.

Writing a business plan can benefit your business, whether you are applying for a loan or not. A good business plan can help you develop strategic priorities and stick to them. It describes how you are going to grow your business, which can be valuable to lenders, who will want to see that you are able to repay a loan that you are applying for.

U.S. Small Business Administration. “ Write Your Business Plan .”

U.S. Small Business Administration. “ Market Research and Competitive Analysis .”

U.S. Small Business Administration. “ Fund Your Business .”

Navy Federal Credit Union. “ The 5 Cs of Credit .”

  • How to Start a Business: A Comprehensive Guide and Essential Steps 1 of 25
  • How to Do Market Research, Types, and Example 2 of 25
  • Marketing Strategy: What It Is, How It Works, and How to Create One 3 of 25
  • Marketing in Business: Strategies and Types Explained 4 of 25
  • What Is a Marketing Plan? Types and How to Write One 5 of 25
  • Business Development: Definition, Strategies, Steps & Skills 6 of 25
  • Business Plan: What It Is, What's Included, and How to Write One 7 of 25
  • Small Business Development Center (SBDC): Meaning, Types, Impact 8 of 25
  • How to Write a Business Plan for a Loan 9 of 25
  • Business Startup Costs: It’s in the Details 10 of 25
  • Startup Capital Definition, Types, and Risks 11 of 25
  • Bootstrapping Definition, Strategies, and Pros/Cons 12 of 25
  • Crowdfunding: What It Is, How It Works, and Popular Websites 13 of 25
  • Starting a Business with No Money: How to Begin 14 of 25
  • A Comprehensive Guide to Establishing Business Credit 15 of 25
  • Equity Financing: What It Is, How It Works, Pros and Cons 16 of 25
  • Best Startup Business Loans 17 of 25
  • Sole Proprietorship: What It Is, Pros & Cons, and Differences From an LLC 18 of 25
  • Partnership: Definition, How It Works, Taxation, and Types 19 of 25
  • What is an LLC? Limited Liability Company Structure and Benefits Defined 20 of 25
  • Corporation: What It Is and How to Form One 21 of 25
  • Starting a Small Business: Your Complete How-to Guide 22 of 25
  • Starting an Online Business: A Step-by-Step Guide 23 of 25
  • How to Start Your Own Bookkeeping Business: Essential Tips 24 of 25
  • How to Start a Successful Dropshipping Business: A Comprehensive Guide 25 of 25

what lenders look for in a business plan

  • Terms of Service
  • Editorial Policy
  • Privacy Policy
  • Your Privacy Choices

COVID-19 Resource Center

  • Business Tips

Insider Tips: What Lenders Want to See in Your Business Plan

  • June 8, 2018

what lenders look for in a business plan

As a small business lender, Pursuit has “insider” knowledge about what lenders really look for in business plans. Ensuring that your plan includes the key points outlined in this article will help lenders better understand your business and your funding needs.

Every business needs a plan. While they’re critical during the startup phase, they’re just as essential during growth periods to keep leadership focused. Down the road, your business plan can provide a framework for decisions on expansion opportunities and to help you re-focus efforts to align with your mission. They’re also required for small business lending from reputable lenders, including Small Business Administration (SBA)-backed loans.

Lender’s perspective: business plan narrative

To be effective, there are some essential elements that you must include in your plan’s narrative. From a lender’s perspective, here’s what they’ll want to see:

  • Business purpose : What does your business do? Include a simple, straightforward description of the fundamentals of your business. In one to two sentences, the lender should be able to learn how your business does or will make money.
  • Who are your key suppliers?
  • What are some key products/services that serve as core revenue streams?
  • If you’re carrying inventory, where is it stored, and how exactly is it shipped to customers?
  • Are you paid immediately upon delivery of products or services, or do you bill on 30-, 60- or 90-day terms?
  • The business owner : Potential lenders want to have confidence in your ability as the owner ability to run your business successfully. Tell them about your relevant expertise and include your resume in your plan’s appendices (the section at the end of your plan that includes more detailed information). Do you have industry experience? Do you have a financial background? Lenders want to see that you know your market, so if you have prior industry experience, be sure to highlight it. If there are gaps in the ownership team’s background knowledge, who will be hired to fill those gaps?
  • Financing : In addition to financial projections (the next section), provide a brief narrative section on how you’ll fund your business until it becomes self-supporting. What is your financial contribution? Where will you get the rest of the funds needed? What will the loan be used for, and specifically, how will that help the business grow? Lenders want to see details and evidence of a thoughtful growth plan in your answer to this question. A generic response such as, “I want $100,000 to hire people and grow the business,” isn’t enough. Instead, dig into the details of how the loan will specifically contribute to your plans for growth. For example, “I want to buy a higher-capacity printer that costs $50,000 so that I can raise my pamphlet-printing business’s weekly production runs to increase revenue.”
  • Industry analysis : Lenders like to work with industries that have growth potential. What’s the demand for your goods or services and how do you plan to meet that demand? What factors could impact your growth potential? How do you plan to leverage opportunities or overcome challenges?
  • Competitive research : Talk about businesses within your industry that are similar to yours, and what makes yours different or better. Perhaps you offer new products or services, or maybe you’ve developed a more cost-effective way to produce your products. Are you marketing your brand as a luxury product or service? If you have a brick-and-mortar location, are you the first to bring an existing product or service to your geographic market? Everyone has competitors, so be clear about yours. (If you haven’t yet read Blue Ocean Strategy , we recommend it to help you develop your strategy).
  • SWOT analysis : When you include a SWOT analysis—strengths, weaknesses, opportunities and threats—you demonstrate that you understand your business and industry, as well as its challenges, and are prepared to meet them. There are many good examples and templates for SWOT analyses available online.
  • Marketing plans : It’s never enough to hope that news of your business will spread via word-of-mouth—potential lenders want to see how you’ll get and keep your customers. It’s also not sufficient to say that your target market is “everyone.” Even if that’s your ultimate goal, who is most likely to buy your products or services first? Specifically identify your target market as well as how you’re going to reach that audience. What do you know about them? How do your products or services align with their needs? Where do they shop and what are their buying habits (or how do they use your services)? Keep in mind that your marketing plan doesn’t have to be expensive to implement, but it must effectively reach your target clients.

Lender’s perspective: financials

While it’s a common practice to lead with the narrative portion of your business plan, when lenders review plans they typically focus on the financials first. Then they’ll reference the narrative to gain a sense of how these assumptions are supported by the written plan. You can put your best foot forward by creating a great cash flow forecast. Here are some tips to get started:

  • Lenders understand that your projections are exactly that: assumptions that you’re making about revenues and expenses based on your best estimates. Most won’t challenge your projections if they appear credible and reflect what you say you’ll do in the narrative.
  • Lenders don’t expect startups to be profitable right away, so be realistic and somewhat conservative in your projections. Include a ramp-up period to demonstrate that you’re realistic and have planned for likely cash-flow shortages early on. It’s also okay to also include a best-case scenario and show that you’re aiming high.
  • Rather than roll revenue items into a single line item, provide revenue details on the types of products and services you plan to offer. To the extent that it makes sense for your business, revenue projections should include broad categories by types of products and services or by market segments.
  • Lenders will review common financial ratios for your industry and how your projections compare. You can get this information for free from your local Small Business Development Center or local business library. If your assumptions skew either stronger or weaker than industry standards, address that with good supporting information.
  • One of the hardest parts of this process is projecting working capital needs during ramp-up periods, but good advisors or lenders can help. With this projection, be sure to also provide accurate estimates for hard costs such as equipment and inventory, as well as soft costs, which include deposits and professional fees.
  • Finding the optimal ratio of your own financial contribution and funds lent by others is essential to your business’s survival in the early years. A lender will know you’re on the right track when your projected annual cash flow exceeds your projected annual debt service.

*If you want to brush up on lending lingo before you apply for a business loan, see our guide on common lending terminology .

Lender’s perspective: executive summary

An executive summary that highlights the key points from each section of your plan is usually the last thing that you’ll create, although it’s typically the first page (or two) of your plan presentation. Narrow this down to only the key information, with detailed information in the rest of the plan and in the appendices.

Create a plan that you and your lenders will love

By the end of reading your business plans, a lender should know how your business will become and stay profitable. More than anything, you want to create a business plan that’s useful in your day-to-day operations and strategic planning—but if you also create one that lenders love, you’ll demonstrate that you’re knowledgeable, competent, and informed about your industry and prepared for the ups-and-downs of business ownership.

Give your business a boost!

  • First Name *
  • Email Address *
  • Comments This field is for validation purposes and should be left unchanged.

By clicking "Subscribe" you agree to our terms and conditions .

Related articles

What You Need to Know About the Corporate Transparency Act

The Business Owner’s Guide to Small Business Loans

Small Business Tax Planning Tips

CrossFit TakeBack: Re-energizing a Gym with an SBA Microloan and More

Find flexible, affordable business loan options

Headquarters

Business Loans

Service areas.

Prudent Lenders logo

© 2024 Pursuit. All Rights Reserved.

Terms of Service   |  Privacy Policy   |  Machine Readable Files   |  Equal Opportunity Employment   |  Title VI, Section 504, the Age Discrimination Act, and Title IX

The 5-minute newsletter with fresh insights, guides and more!

  • Name This field is for validation purposes and should be left unchanged.

You are about to leave the Pursuit website

Pursuit provides links from this website to other websites for your information only. Pursuit does not recommend or endorse any product or service appearing on these third party sites, and disclaims all liability in connection with such products or services. We are not responsible for the privacy practices, security, confidentiality or the content of any website other than our own. Pursuit does not represent members or third parties should the two enter into an online transaction, and recommends that you appropriately investigate any products or services prior to purchase. Questions as appropriate to the content should be directed to the site owners.

SMBCompass-logo

Small Business

8 Things Lenders Definitely Want to See in Your Business Plan

Ezra Cabrera | November 18, 2019

Whether you’re a start-up or established business, a business plan is one of the most important documents you’ll ever need. In case you’re unaware, your chances of obtaining small business loans rest heavily upon it. In other words, your request and approval for a loan depend on how you present your business to potential lenders.

The key to getting the funds you need to drive your business forward is to figure out what the lenders want to see in a business plan, and then provide it for them.

Related:  8 Things You Need to Do Before Applying for Small Business Loans

To help reputable lenders gain a better understanding of your business, be sure to include the following key points:

1. The History of Your Business

Indicate where your business started and how it has grown. Be sure to cite the unique challenges you were confronted with and how they were addressed. This will give lenders a clear perspective on your business acumen. Most importantly, this will show lenders how you adjust to the changing highs and lows of today’s market.

2. How Your Business Generates Revenues

Lenders would want to make sure they’ll be repaid the money they lend. You’ll need to explain how you serve your customers, how you deliver your product/service, and how you collect payment.

3. The Management Team

Your prospective lenders will want to know if your management team  possesses the relevant skills . Knowledge and experience will play a crucial role as it will be useful in growing your business.  Be sure to present the people at the helm in a positive light and expand upon what they bring to the table.

4. The Market

Lenders pay close attention to how your business generates continual revenue creation and growth. Your business plan provides them with pertinent information about the customers you serve, the size of the market, the viability such as affluence, and the potential for growth. They will also look at your competitors and want to know how you set yourself apart. Aside from that, they’ll want to know how you’ll market your business to your audience. They want to be able to make sure that your business will be profitable so you can repay the loan.

5. Historical Financials that Include Debt Coverage Ratios

Lenders want to see a  detailed financial report  that clearly shows all of your business’ revenue, assets, and liabilities. However, you’ll need to present repayment structures so they can have a clear idea about your business’ financial health. You’ll also need to make sure you don’t have insufficient cash flow as well as debt service coverage ratios. Not having enough cash on hand to make loan payments is a sure-fire way of being denied small business loans.

6. Projections

You must give lenders a snapshot of what you expect to happen to your business financially, on a moving forward basis. It’s best to highlight the contrast between what will occur without funding and what projected growth is expected should you receive financing. Don’t forget to mention your projections involving job creation, product development, and market growth. They’ll also want to see any seasonal or cyclical changes to your business and how these changes will impact (if at all) your business financially.

7. Collateral

Be sure to cite the assets that your company owns including any real property that you can use as collateral. In case you’re not aware, it’s also possible to include personal property as additional collateral for underwriting consideration. With an asset to guarantee the loan, you can enjoy more flexible terms and lower interest rates.

Related:  Why Do Lenders Need Personal Guarantees for SBA Loans?

8. The Purpose of Your Project

Lastly, remember that reputable lenders will always want to know where their money is going. Furthermore, they need to understand the reason why you’re asking for small business loans and the need it serves. Whether you plan on installing new equipment or opening another location, you’ll need to be as detailed as possible. A comprehensive presentation of these details is highly critical if you’re looking to get small business loans.

It’s also possible that lenders will ask for items that go beyond your business plan. These may include criminal records, residence, or secondary repayment sources. To keep the process moving, you’ll need to be responsive to their requests even if some of them seem unnecessary.

If you’re prepared to give them the information they’re asking for, you’ll give them a positive impression. This will show that you and your business are stable, professional, and creditworthy. You have to do all that you can to improve your chances of being approved of a small business loan. Be sure that your business plan is the center-point that works on your behalf.

Small Business Loans: The Financial Source You Need

Many may not realize it, but your business plan isn’t just there to guide you on how you can run your business. When you need extra funding, your business plan will help you sell your business to banks or other lenders. That’s why it’s extremely important to craft a good one to increase your chances of small business loans. Consider these items when creating your business plan. Be sure to know what the lenders want so you can increase your chances of loan approval and drive your business forward.

About the Author

Ezra Cabrera

Ezra Cabrera

Ezra Neiel Cabrera has a bachelor’s degree in Business Administration with a major in Entrepreneurial Marketing. Over the last 3 years, she has been writing business-centric articles to help small business owners grow and expand. Ezra mainly writes for SMB Compass, but you can find some of her work in All Business, Small Biz Daily, LaunchHouse, Marketing2Business, and Clutch, among others. When she’s not writing, you’ll find her in bed eating cookies and binge-watching Netflix.

what lenders look for in a business plan

IMAGES

  1. What Lenders Look for in a Business Plan

    what lenders look for in a business plan

  2. How to Create a Business Plan (7+ Business Plan Templates)

    what lenders look for in a business plan

  3. Part 4- What Lenders Look For In A Business Plan

    what lenders look for in a business plan

  4. Steps Involved on How to Write a Business Plan to Suit your Desire

    what lenders look for in a business plan

  5. What Lenders Look for in a Business Plan

    what lenders look for in a business plan

  6. 3 Things Lenders Look for in a Business Plan |Small Business Sense

    what lenders look for in a business plan

COMMENTS

  1. 10 Tips for What a Lender Looks for in a Business Plan

    Lenders want to see that you have enough confidence in your success to risk your own money before they’ll risk their members’ or shareholders’ money. And most lenders will want to see your investment (or equity) of at least 10% of what you need in your financial projections.

  2. How to Write a Business Plan for a Loan

    Lenders will assess your plan against the “five Cs”: character, capacity, capital, conditions, and collateral. Why Do I Need a Business Plan? There are many reasons why all businesses...

  3. What Lenders Want to See in Your Business Plan

    Insider Tips: What Lenders Want to See in Your Business Plan June 8, 2018 As a small business lender, Pursuit has “insider” knowledge about what lenders really look for in business plans. Ensuring that your plan includes the key points outlined in this article will help lenders better understand your business and your funding needs.

  4. 8 Things Lenders Definitely Want to See in Your Business Plan -

    5. Historical Financials that Include Debt Coverage Ratios. Lenders want to see a detailed financial report that clearly shows all of your business’ revenue, assets, and liabilities. However, you’ll need to present repayment structures so they can have a clear idea about your business’ financial health.

  5. How To Write A Business Plan For A Loan

    A one-page business plan may be sufficient for certain types of small business loans (for example, online loans), but bank loans and SBA loans typically require a more in-depth business plan that delves further into your financials. If you need to write a business plan for a loan, you’ve come to the right place.