How to Write a Business Plan for a Loan

You need a business plan to get a loan. Here’s a template to follow with tips and advice on what to include in each section.

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A business plan is a document that summarizes the operational and financial objectives of a business. It is used to track, monitor and evaluate the progress of a business over a specified period of time. A business plan is also a useful tool for applying for loans from financial institutions.

When preparing a business plan for a loan, it is important to include information on the nature of the business, the history of the business, the current financial situation of the business and its future prospects. The plan should also include information on the management team, the marketing strategy and the financial projections for the next three to five years.

It is important to remember that a business plan is not set in stone and should be revised as circumstances change. The goal of a business plan is to provide decision-makers with a clear understanding of the direction in which the business is heading so that they can make informed decisions about its future.

The Executive Summary

The executive summary is the most important part of your business plan. It is a brief description of your business, its products or services, its markets, and its management team. It should be no more than one or two pages long.

The executive summary should include the following information:

-The name and contact information of your business
-A brief description of your business
-Your business’s products or services
-Your target market(s)
-Your competitive advantages
-Your management team
-Your financial projections

Company Description

Every business plan should include a company description that outlines the basic characteristics of the business, including the company’s structure, management team, history, mission statement and goals. This section should also provide a brief overview of the industry in which the business operates, as well as any competitive advantages that the company may have.

Products and Services

The next section of your business plan should describe the products and services you offer. You’ll want to include a detailed description of each product or service, as well as information about pricing, availability, and any unique selling points. If you have plans to develop new products or services in the future, you can include that information here as well.

Be sure to keep your audience in mind as you write this section. If you’re writing for a bank or other lender, they will be most interested in the products and services that generate revenue. However, if you’re seeking investment from venture capitalists or other investors, they will be more interested in your potential for growth. Either way, make sure to provide enough detail to give your reader a good understanding of your business.

Market Analysis

As you write your business plan, one of the sections you will want to include is a market analysis. This is where you will discuss the industry you are in, your target market, and your competitors. The market analysis is important because it will help lenders understand your business and the risks involved in lending you money.

The first step in writing a market analysis is to understand the industry you are in. You will want to research the industry by reading trade publications, talking to experts, and attending trade shows. Once you have a good understanding of the industry, you can start to identify your target market.

Your target market is the group of people who are most likely to buy your product or service. To identify your target market, you will want to think about who your product or service is for, what needs it meets, and who has those needs. Once you have identified your target market, you can start to research your competition.

To research your competition, you will want to look at their marketing materials, talk to their customers, and find out as much as you can about their business. Once you have done this research, you can start to write your own business plan. When writing your business plan, be sure to include a section on your market analysis so that lenders can understand your industry and the risks involved in lending you money.

Strategy and Implementation

The strategy and implementation section of your business plan includes your business model, how you plan on selling your product or service, and a detailed marketing plan. This is where you really get into the nitty gritty of how your business is going to operate on a day-to-day basis.

Your business model should include an overview of the products or services you plan on selling, your target market, your pricing strategy, and a description of your sales and marketing efforts. For a loan application, you will need to provide more detailed information on your business model and how you plan on making money.

Your marketing plan should include a description of your target market, your marketing goals, and a detailed marketing budget. For a loan application, you will need to provide more detailed information on your marketing efforts, including any promotional activities you have planned.

Finally, the implementation section of your business plan should include a timeline for implementing your business strategy, as well as milestones for measuring progress. For a loan application, you will need to provide more detailed information on the milestones you have set for yourself and how you plan on meeting them.

Management and Organization

If you are seeking a business loan, you will need to put together a formal business plan that explains your business concept, outlines your financial projections, and describes your management team. Any lender will want to see this information before considering your loan request.

Your business plan should include:
-A executive summary that outlines your business concept and loan amount request
-A description of your company, including its history, products or services, target market, and competitive advantages
-A marketing plan that details your sales and marketing strategy, including your advertising budget
-A management team biographies outlining the experience and qualifications of each key member of your team
-Your financial projections for the next three to five years, including income statements, balance sheets, and cash flow statements
-An explanation of how the loan will be used and how it will help your business grow

Financial Plan

The financial section of your business plan should include a 12-month profit and loss projection, a balance sheet, and a cash flow analysis. This information will be used by potential lenders or investors to determine the risk involved in lending you money or investing in your business.

The purpose of the profit and loss projection is to give the reader an idea of how your business will generate revenue and what your expenses will be. Your goal should be to create a projection that is realistic and accurate.

Your balance sheet should include a list of all the assets and liabilities of your business. This information will be used to determine the net worth of your business.

Your cash flow statement will show how much cash you have on hand, how much you will need to pay your expenses, and how much you can expect to bring in from sales. This information is critical for potential lenders or investors because it will show them whether or not your business has the ability to meet its financial obligations.


Appendices are where you include all the supporting documentation for your business plan. This could include your financial statements, tax returns, licenses and permits, contracts, and more. Any time you reference a document in your business plan, be sure to include it in the appendix.

Make sure your appendices are well organized and easy to find. You don’t want potential lenders flipping through pages trying to find the information they need. A good way to organize your appendices is to label them by section. For example, if you have financial statements, you could label them “Financial Statements Appendix A,” “Financial Statements Appendix B,” and so on.

If you’re not sure what kind of documentation to include in your appendix, talk to your banker or small business development center counselor. They can help you determine what would be most helpful for potential lenders who are reviewing your business plan.

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