What to Plan for When Applying for a Business Loan

Are you thinking about applying for a business loan? Do you yearn to be successful and to stay ahead of your competition? Do you want to make the kinds of profits you know deep down your business can make?

Planning for Success – Getting the Business Plan Nailed

There is an array of decisions to make when you’re considering applying for funding for a new business. Writing an effective business plan is arguably the most important.

Before you submit a business plan for a loan, carefully consider these 8 things to help you prepare a plan for a loan from a bank or other lending institution such as https://www.universalfinance-difficultloanspecialistsadelaide.com.au/services/unsecured-business-loans-finance-lenders-loan.

8 Tips for Writing a Business Plan 

  1. Make sure you include the future business opportunity in your selected business idea and add things such as third-party reports, market research, competition analysis and sector analysis into your business plan. Lenders want to see that you know the area you are planning to become involved in. Talk about your USP, and why you think you can make it successful.
  2.  Include personal financial statements, along with financial statements for all interested parties with 20% or more interest in the business. These statements should not be more than 90 days old, so they give an accurate account of you and your partner’s financial situation.
  3. Describe financial projections for at least the first three years. This should include projected income and cash flow statements until positive cash flow can be shown.
  4. State the total amounts of money you require to get your business up and running. Always include how you determine this amount. Be transparent. Include estimates for equipment, supplies, other costs such as rent and initial staffing expenses.
  5. Describe in as much detail as you can, how you intend to repay the loan and how your business will use the money for better return on investment.
  6. Having adequate insurance is essential for any business. Banks or lending institutions will want to see that you are insured before any loan will be granted. This is to cover against things such as the owner getting a serious injury.
  7.  A description of the long-term plan for your business will help investors decide whether you are serious in your business or not.
  8.  Describing the marketing plan to answer key questions such as:
  • Is there a proven market for your product or service?
  • Who are your competitors and what are their strengths and weaknesses?
  • What is your client profile?

However you proceed, be sure to get professional advice from a number of sources before proceeding or making any financial commitment.