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Writing A Business Plan For the Bank. What Do They Want To See?

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Article Overview: You have been asked to write a business plan by your bank so that you can borrow that much needed money or extend your overdraft. What are they expecting to see?

Writing A Business Plan For the Bank. What Do They Want To See?

You have been asked to write a business plan by your bank so that you can borrow that much needed money or extend your overdraft. What are they expecting to see?

Vision - they want to know that you have a clear vision as to where your business is going and where you intend it to be in a few years.

Commitment – this included a fair investment from you as well as the time, health and stamina to invest time and effort into the business.

Security – the bank is a business and will expect to have something valuable from you in exchange for your loan. This can include something tangible from your business but they also look to your private life as well so expect to be asked about your own real estate.

So if you are asking for money for a new internet only company with little investment on your side and no security available your chances of obtaining a loan are very low. Yes I know that google, facebook etc. all obtained loans at some time but that is because they had the following three things.

Potential – a lender wants to know that they will get their money back with considerable interest. Your business must have potential to make a lot of secure profit in the future. This is how market breaking companies get funded.

Experience – if you are a start up company they want assurance that you have the experience to run it and produce the services and products that you are selling. If you are an established company they want to know how you have been doing recently and what orders you have in the future.

Market - you must show that you know and understand the market for your products and services and that this market exists for some time to come.

Financial Planning – you must show that you have looked at all the financial aspects of your company and have a good strategy for utilising the money you are borrowing.

If you show all of this in a good, well thought out business plan you are well on the way to raising funding. Good luck!

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Article Tags: bank, business planning, loan, overdraft, writing a business plan



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