Getting a business loan from a bank or financial institution seems like a tedious task, but it can be done by anyone who knows how to write a business plan for a bank loan. The process of getting a loan from the bank includes writing a business plan and submitting it along with other necessary documents to the bank and then waiting for the decision of approving or denying the loan.
This guide is written by professionals to help you know how to write a business plan and tips on submitting the same to the bank in order to get your business funded with a bank loan successfully.
Must Include In Your Business Plan To Get a Business Loan From Bank
A business plan is often an integral part of any business startup, as it gives all parties involved an idea of what you hope to achieve with your new venture. When applying for a bank loan, most banks will require that you submit a formal business plan along with your application in order to be considered for funding. I would highlight some important points that you must consider in your business plan.
Critical Information of your Business
In order to write your business plan for a bank loan, your business needs to have several documents on hand. Among these: are proof of incorporation and government-issued identification for each member of your company’s ownership structure, such as a certificate of good standing and articles of incorporation.
Purpose of Your Loan
You need to explain to banks why you need money and how it will help your business in order for them to lend. The bank will want evidence that there is a need for what you are trying to do. You may have a great idea, but if no one wants it or needs it, then you won’t get funding. So make sure you include details about:
Why does your business exist? What does your business solve? What is the market for your product or service? Who are your competitors?
Assets & Liability
Include your assets and liabilities in your business plan. It’s an overview of what you own, what you owe, and how much. If you have a lot of debt (such as a mortgage or personal loans), consider how these will impact your small business startup. You might need to factor that into how much seed money you raise or decide to bootstrap. Listing all debts, including bank loans and credit cards, is essential for any good business plan to receive a bank loan.
How You Can Pay Back Your Loan
A well-thought-out business plan will include a section that details how your business will pay back its loans. The most common loans are those taken out to fund startup and expansion. Banks want to know you have a solid, realistic way of paying them back with interest. They’re not going to lend you money if they think you’ll never be able to pay it back.
Company’s Financial Health
Your business plan must include a thorough description of your company’s financial health. The word detailed can’t be stressed enough, especially when it comes to your Balance Sheet and Profit and Loss Statement.
Why OGSCapital is Recommended For Making Business Plan
Successfully your business plan with every single aspect addressed is important for a number of reasons. First, it positions you to get more funding. Second, it’s required by most banks in order to qualify for a business loan. Third, it helps you execute your business according to plan. And lastly, it gives you an opportunity to reflect on your progress and make adjustments as needed. All of these things are crucial to running a successful business, so don’t skip out on creating one!
If you need help writing a professional business plan, then OGSCapital can be there for you when no one else will. Whether you are just starting out or already have some experience under your belt but want to grow even further, we can help take your company from good to great!
As we said, creating a business plan is a useful exercise because it forces you to think through all your ideas, research, and know your market. Our detailed guide will walk you through every step to help you create an effective document that’s ready for investors or bankers.
If you’re a newbie and don’t have experience, then OGScapital is the most reliable platform to make highly converting business plans. They have industry experts who analyze your business plans and then make your winning business plan.