business plan for bank loan pdf

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How to Write a Successful Business Plan for a Loan

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Table of Contents

What does a loan business plan include?

What lenders look for in a business plan, business plan for loan examples, resources for writing a business plan.

A comprehensive and well-written business plan can be used to persuade lenders that your business is worth investing in and hopefully, improve your chances of getting approved for a small-business loan . Many lenders will ask that you include a business plan along with other documents as part of your loan application.

When writing a business plan for a loan, you’ll want to highlight your abilities, justify your need for capital and prove your ability to repay the debt. 

Here’s everything you need to know to get started.

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

A successful business plan for a loan describes your financial goals and how you’ll achieve them. Although business plan components can vary from company to company, there are a few sections that are typically included in most plans.

These sections will help provide lenders with an overview of your business and explain why they should approve you for a loan.  

Executive summary

The executive summary is used to spark interest in your business. It may include high-level information about you, your products and services, your management team, employees, business location and financial details. Your mission statement can be added here as well.

To help build a lender’s confidence in your business, you can also include a concise overview of your growth plans in this section.

Company overview

The company overview is an area to describe the strengths of your business. If you didn’t explain what problems your business will solve in the executive summary, do it here. 

Highlight any experts on your team and what gives you a competitive advantage. You can also include specific details about your business such as when it was founded, your business entity type and history.

Products and services

Use this section to demonstrate the need for what you’re offering. Describe your products and services and explain how customers will benefit from having them. 

Detail any equipment or materials that you need to provide your goods and services — this may be particularly helpful if you’re looking for equipment or inventory financing . You’ll also want to disclose any patents or copyrights in this section.

Market analysis

Here you can demonstrate that you’ve done your homework and showcase your understanding of your industry, current outlook, trends, target market and competitors.

You can add details about your target market that include where you’ll find customers, ways you plan to market to them and how your products and services will be delivered to them.

» MORE: How to write a market analysis for a business plan

Marketing and sales plan

Your marketing and sales plan provides details on how you intend to attract your customers and build a client base. You can also explain the steps involved in the sale and delivery of your product or service.

At a high level, this section should identify your sales goals and how you plan to achieve them — showing a lender how you’re going to make money to repay potential debt.

Operational plan

The operational plan section covers the physical requirements of operating your business on a day-to-day basis. Depending on your type of business, this may include location, facility requirements, equipment, vehicles, inventory needs and supplies. Production goals, timelines, quality control and customer service details may also be included.

Management team

This section illustrates how your business will be organized. You can list the management team, owners, board of directors and consultants with details about their experience and the role they will play at your company. This is also a good place to include an organizational chart .

From this section, a lender should understand why you and your team are qualified to run a business and why they should feel confident lending you money — even if you’re a startup.

Funding request

In this section, you’ll explain the amount of money you’re requesting from the lender and why you need it. You’ll describe how the funds will be used and how you intend to repay the loan.

You may also discuss any funding requirements you anticipate over the next five years and your strategic financial plans for the future.

» Need help writing? Learn about the best business plan software .

Financial statements

When you’re writing a business plan for a loan, this is one of the most important sections. The goal is to use your financial statements to prove to a lender that your business is stable and will be able to repay any potential debt. 

In this section, you’ll want to include three to five years of income statements, cash flow statements and balance sheets. It can also be helpful to include an expense analysis, break-even analysis, capital expenditure budgets, projected income statements and projected cash flow statements. If you have collateral that you could put up to secure a loan, you should list it in this section as well.

If you’re a startup that doesn’t have much historical data to provide, you’ll want to include estimated costs, revenue and any other future projections you may have. Graphs and charts can be useful visual aids here.

In general, the more data you can use to show a lender your financial security, the better.

Finally, if necessary, supporting information and documents can be added in an appendix section. This may include credit histories, resumes, letters of reference, product pictures, licenses, permits, contracts and other legal documents.

Lenders will typically evaluate your loan application based on the five C’s — or characteristics — of credit : character, capacity, capital, conditions and collateral. Although your business plan won't contain everything a lender needs to complete its assessment, the document can highlight your strengths in each of these areas.

A lender will assess your character by reviewing your education, business experience and credit history. This assessment may also be extended to board members and your management team. Highlights of your strengths can be worked into the following sections of your business plan:

Executive summary.

Company overview.

Management team.

Capacity centers on your ability to repay the loan. Lenders will be looking at the revenue you plan to generate, your expenses, cash flow and your loan payment plan. This information can be included in the following sections:

Funding request.

Financial statements.

Capital is the amount of money you have invested in your business. Lenders can use it to judge your financial commitment to the business. You can use any of the following sections to highlight your financial commitment:

Operational plan.

Conditions refers to the purpose and market for your products and services. Lenders will be looking for information such as product demand, competition and industry trends. Information for this can be included in the following sections:

Market analysis.

Products and services.

Marketing and sales plan.

Collateral is an asset pledged to a lender to guarantee the repayment of a loan. This can be equipment, inventory, vehicles or something else of value. Use the following sections to include information on assets:

» MORE: How to get a business loan

Writing a business plan for a loan application can be intimidating, especially when you’re just getting started. It may be helpful to use a business plan template or refer to an existing sample as you’re going through the draft process.

Here are a few examples that you may find useful:

Business Plan Outline — Colorado Small Business Development Center

Business Plan Template — Iowa Small Business Development Center

Writing a Business Plan — Maine Small Business Development Center

Business Plan Workbook — Capital One

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U.S. Small Business Administration. The SBA offers a free self-paced course on writing a business plan. The course includes several videos, objectives for you to accomplish, as well as worksheets you can complete.

SCORE. SCORE, a nonprofit organization and resource partner of the SBA, offers free assistance that includes a step-by-step downloadable template to help startups create a business plan, and mentors who can review and refine your plan virtually or in person.

Small Business Development Centers. Similarly, your local SBDC can provide assistance with business planning and finding access to capital. These organizations also have virtual and in-person training courses, as well as opportunities to consult with business experts.

Business plan software. Although many business plan software platforms require a subscription, these tools can be useful if you want a templated approach that can break the process down for you step-by-step. Many of these services include a range of examples and templates, instruction videos and guides, and financial dashboards, among other features. You may also be able to use a free trial before committing to one of these software options.

A loan business plan outlines your business’s objectives, products or services, funding needs and finances. The goal of this document is to convince lenders that they should approve you for a business loan.

Not all lenders will require a business plan, but you’ll likely need one for bank and SBA loans. Even if it isn’t required, however, a lean business plan can be used to bolster your loan application.

Lenders ask for a business plan because they want to know that your business is and will continue to be financially stable. They want to know how you make money, spend money and plan to achieve your financial goals. All of this information allows them to assess whether you’ll be able to repay a loan and decide if they should approve your application.

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How To Write A Business Plan for A Bank Loan (3 Key Steps)

Wondering how to create a business plan that will wow your banker.

You're not alone.

Most entrepreneurs see writing a business plan as a gargantuan task – especially if they've never written one before.

Where do you start?

How do you calculate the financials?

How can you be sure you're not making a mistake?

And if you need a business plan for a bank loan, getting this document right is absolutely essential.

So here's what we recommend: simplify the planning process by breaking the work up into manageable, bite–sized steps. That way, you can focus on one section at a time to make sure it's accurate.

Here's a quick overview of the step–by–step process we guide entrepreneurs through when they sign up for LivePlan.

Step 1: Outline The Opportunity

This is the core of your business plan. It should give loan officers a clear understanding of:

• What problem you're solving
• How your product or service fits into the current market
• What sets your business apart from the competition

There are three key parts to this step:

The Problem & Solution

Detail exactly what problem you are solving for your customers. How do their lives improve after you solve that “pain point” for them?

We recommend actually going out and chatting with your target audience first. That way, you can validate that you're solving a real problem for your potential customers.

Be sure to describe your solution in vivid detail. For example, if the problem is that parking downtown is expensive and hard to find, your solution might be a bike rental service with designated pickup and dropoff locations.

Target Market

Who exactly are you selling to? And roughly how many of them are there?

This is crucial information for determining whether or not your business will succeed long–term. Never assume that your target market is “everyone.”

For example, it would be easy for a barber shop to target everyone who needs a haircut. But most likely, it will need to focus on a specific market segment to reach its full business potential. This might include catering to children and families, seniors or business professionals.

Competition

Who are your direct competitors? These are companies that provide similar solutions that aim to solve your customers' pain points.

Then outline what your competitive advantages are. Why should your target market choose you over the other products or services available?

Think you don't have any competition? Think again. Your customers are likely turning to an indirect competitor that is solving their problem with a different type of solution.

For example: A taco stand might compete directly with another taco stand, but indirectly with a nearby hot dog vendor.

Boost your chances of securing a loan

See how LivePlan can help you write a fundable business plan

Step 2: Show how you'll execute

This is where the action happens! Here you'll get into the details of how you'll take advantage of the opportunity you outlined in the previous section. This part demonstrates to banks that you have a strong plan to achieve success.

The three main components of this step include:

Marketing & Sales Plan

There can be a lot of moving parts to this one, depending on your business model.

But most importantly, you'll need to fully explain how you plan to reach your target market and convert those people into customers. A few example of what should be included:

• Positioning strategy. What makes your business both unique and highly desirable to your target market?
• Marketing activities. Will you advertise with billboards, online ads or something else entirely?
• Pricing. What you charge must reflect consumer demand. There are a few models to choose from, including ‘cost–plus pricing’ and ‘value pricing.’

This is the nuts and bolts of your business. It's especially important for brick–and–mortar companies that operate a storefront or have a warehouse.

You may want to explain why your location is important or detail how much space you have available. Plan to work at home? You can also cover your office space and any plans to move outside your house.

Any specialized software or equipment and tools should also be covered here.

Milestones & Metrics

Lenders and investors want to be confident that you know how to turn your business plans into financial success. That's where your milestones come in.

These are planned goals that help you progress your company. For example, if you're launching a new product your milestones may include completing prototypes and figuring out manufacturing.

Metrics are how you will gauge the success of your business. Do you want to generate a certain level of sales? Or keep costs at a certain level? Figuring out which metrics are most important and then tracking them is essential for growth.

Step 3: Detail your financial plan

This is the most crucial – and intimidating – part of any business plan for a bank loan. Your prospective lender will look especially close at this section to determine how likely your business is to succeed.

But the financial section doesn't have to be overwhelming, especially if you break the work into smaller pieces. Here are 3 items that your plan must have:

Simply put, this is your projections for your business finances. It gives you (and the bank) an idea of how much profit your company stands to make. Just a few items you'll need to include:

• Revenue. List all your products, services and any other ways your business will generate income.
• Direct costs. Or in other words, what are the costs to make what you sell?
• Personnel. Salaries and expenses related to what you pay yourself, employees and any contactors.
• Expenses. Things like rent, utilities, marketing costs and any other regular expenses.

Exactly how will you use any investments, loans or other financing to grow your business? This might include paying for capital expenses like equipment or hiring personnel.

Also detail where all your financing is coming from. Lines of credit, loans or personal savings should be listed here.

Bankers will be giving this section a lot of attention. Here's what you'll need:

• Profit & Loss. This statement pulls in numbers from your sales forecast and other elements to show whether you're making or losing money.
• Projected Balance Sheet. This is likely the first thing a loan officer will look at: it covers your liability, capital and assets. It provides an overview of how financially sound your business is.
• Projected Cash Flow. Essentially, this statement keeps track of how much money you have in the bank at any given point. Loan officers are likely to expect realistic monthly cash flow for the next 12 months.

Don't forget the Executive Summary

The Executive Summary is the first section of your business plan, but we recommend you tackle it last.

It's basically an introduction to your company, summarizing the main points of your plan. Keep it to just one or two pages and be as clear and concise as possible.

Think of it as a quick read designed to get the lender excited about your business.

If you need help writing your plan

Not everyone feels confident writing a business plan themselves, especially if it's needed to secure a bank loan.

And although you don't need an MBA to write one, getting your business plan right often does require quite a bit of work. So if you need help writing your plan, here are two options to consider:

• Hire a professional business plan writer to do it for you. This is typically the most expensive route, but worth it if you're pursuing $100,000 or more in capital.
• Sign up for LivePlan. It's business planning software that walks you through a step–by–step process for writing any type of plan. It's an affordable option that also gives you an easy way to track your actuals against your business plan, so you can get the insights you need to grow faster.

LivePlan makes it easy to write a winning business plan

No risk – includes our 35-day money back guarantee.

How to write a business plan for a loan from a bank.

Learn how to increase your chances of securing a bank loan with these business proposal tips.

If you want a bank loan to start a new business or expand your existing one, you’ll need a thorough business proposal (also known as a loan proposal). It shows the bank (or lender) that you’ve got a plan that’s likely to succeed.

But loan proposals can also be tedious and complicated to draft. Use the following tips to learn how to write a business proposal for a bank loan and get a head start on success.

Why writing a business proposal for a bank loan is necessary.

When you’re considering getting a loan from a bank to support your business , one important step is creating a well-thought-out business proposal. This will not only help you explain your business plans but also play a big role in helping the bank decide whether to approve your loan request. Here are the main reasons why putting together a solid business proposal for a bank loan is so important:

• Clarity. A well-crafted business proposal helps you clearly articulate your business idea, goals, and objectives to the bank. This ensures that both you and the bank are on the same page regarding the purpose of the loan.
• Risk assessment. Banks need to assess the risk associated with lending you money. Your business proposal provides them with vital information about your business model, market analysis, and strategies, enabling them to gauge the level of risk involved.
• Repayment plan. Banks want to know how you plan to repay the loan. Your proposal should outline a clear and realistic repayment strategy, including cash flow projections and a timeline for repayment.
• Financial health. Lenders need to determine if your business is financially viable and can generate enough income to cover loan repayments. Your proposal should demonstrate the financial health of your business through financial statements, revenue projections, and profit margins.
• Legal requirements. Banks need to ensure that your business complies with all relevant laws and regulations. Your bank proposal letter for a business loan should address any legal considerations, licenses, permits, or certifications required.

What does a business plan proposal for a bank loan look like?

A business plan proposal for a bank loan is typically 20 to 30 pages long and follows a structured format:

• Cover sheet. A cover sheet is often included at the beginning of the proposal. It typically contains the business name, logo (if applicable), contact information, and the date of submission.
• Executive summary. This section provides a concise overview of the entire business proposal, summarizing key points such as the purpose of the loan, business description, financial projections, and the requested loan amount. It’s usually limited to one to two pages.
• Business description. This section offers a detailed explanation of the business, its history, mission, and vision. It also outlines the industry it operates in, its target market, and its competitive analysis.
• Market analysis. Includes market research findings, including market size, trends, and customer demographics. It should also detail your marketing and sales strategies.
• Management team. Describes the qualifications and experience of key members of your management team. Include their roles and responsibilities.
• Financial projections. Includes financial statements such as income statements, balance sheets, and cash flow projections. It should also outline how the loan will be used and how it will benefit the business.
• Loan request. Specifies the loan amount you are requesting from the bank, along with the purpose of the loan.
• Collateral and guarantees. If the loan requires collateral or personal guarantees, provide details about the assets or individuals involved.
• Repayment plan. Explains your proposed loan repayment strategy, including the terms, interest rate, and repayment schedule.
• Appendices. This section may include supporting documents, such as resumes of key team members, market research data, legal documents, and any other relevant information.

How to write a business proposal for a bank loan.

When it comes to securing a bank loan for your business, the quality of your business proposal can make all the difference. Let’s go through the process of how to write a business proposal for a bank loan.

Include critical details for the business plan in the proposal.

Your bank proposal should begin by introducing your business comprehensively. Cover essential aspects such as:

• Business overview. Introduce your business with its name, legal structure, and establishment date.
• Mission. Articulate your business’s purpose and long-term goals.
• Market analysis. Provide insights into your industry, target market, and current trends.
• Company history. Share key milestones and noteworthy achievements.
• Contact information. Include up-to-date contact details.
• Leadership team. Highlight key team members, their roles, qualifications, and relevant experience.
• Legal structure. Specify your business’s legal structure and ownership.
• Products/services. Describe your business offerings and emphasize their unique features.

Outline how you’ll pay the business loan back.

Every bank loan proposal should include some standard details like how much you need to borrow and how you’ll use the loan to advance your business.

More importantly, your business proposal should outline how you plan to pay the bank back. A few things you can write out to accomplish this include:

• Three-to-five-year sales forecasts
• Cash flow projections
• Expense estimates

The more detail you include, the better. But don’t crunch a bunch of numbers on the very first page — make sure your proposal is clearly outlined and all information is grouped logically.

Break down your backup loan repayment plan.

Part of your business proposal’s job is to convince the bank that you can pay them back, whether you meet your sales projections or not. To demonstrate this, show proof of collateral (or something that secures the loan) in case things don’t go as planned after you invest in assets like new real estate, equipment, or inventory for your business.

Simplify the business plan proposal for the bank loan process.

To enhance your business plan proposal’s effectiveness for a bank loan, consider simplifying it. Create your own business proposal and make sure you have the documents required for loan approval to jump-start your path to success. It’s easy to create a PDF online for your bank loan proposal, so it’s easily accessible to share with others for feedback.

Explore everything you can do with Adobe Acrobat today.

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How to Write a Business Plan for Loan with Free Template

A business plan for bank loan is instrumental in getting a loan and funding for your business. When you approach the lenders or investors with a proper business plan , you increase your chances of getting a loan for your business plan. 

Why Do You Need Business Plan for Bank Loan?

• A Business Plan Helps You Get Loans and Funding

A Business Plan Increases Your Chances of Business Success

• A Business Plan Helps you Grow Strategically
• A Business Plan Helps You Measure Business Growth
• What is included business plan for bank loan?

Process of Writing a Business Plan for a Bank Loan

How to create a business plan for a loan with a free template.

• Sample Of Business Plan For Loan And Funding

Wondering how to write a business plan for a loan that could get you approved? Read our guide on the topic, check the business plan sample for bank loan, and use our business plan for loan template to make a killer business plan.

Get our affordable business plan writing services now!

A business plan clears your mind about business, helps you prepare for it, and makes you a good candidate for loans, funding, and investments. In short, writing a business plan for a loan is worth it. 

For Later: To learn more about how to write a business plan specifically for a bank loan, check out our bank ready business plan .

A Business Plan Helps You Get Loans and Funding 

When you present your business idea before investors and lenders (or anyone else you are looking to for funding), you look serious with a business plan. 

You may not need a book in the name of a business plan but you need to present your business idea in a convincing way.

When they know your business idea is sound and you can return the loan, they will be inclined to give you a loan. 

A research on the impact of business planning shows that the businesses that start with proper planning have more chances of success. 

A business plan helps both the new firms and the established firms. 

A Business Plan Helps you Grow Strategically 

A business plan is a road-map for your business growth, whether you use it as a roadmap or not. When you put effort into making a business plan, you set priorities, establish goals, create a strategy for achieving those goals, and set a time frame for achieving those goals. 

A Business Plan Helps You Measure Business Growth 

The market conditions will never be exactly the same as you had expected in the business plan. 

Here, your business plan will help you compare planning against actual developments. You can see if you are going in the right direction as you planned or you need to change course.

Maybe you need to make a new business plan as your business might take a different shape than you expected.

What is included business plan for bank loan?

A business plan starts with an executive summary that briefly describes the business idea and ends with the appendix that includes lengthy financial documents or other reference materials. 

These are the parts of a business plan. 

• Executive Summary
• Business Overview 
• Business Objectives and Goals
• Competitor Analysis 
• Market Analysis  
• Product and Services
• Operational Plan 
• Business Structure and Management
• Financial Analysis
• Marketing and Sales

Let’s see what you will write in each of the above-listed sections of the business plan for loan.

Executive Summary: Write this section after you have completed the business plan. Briefly discuss your business idea and its parts. 

Business Overview: Include basic details about your business like business name, address, year established, etc. 

Business Objectives and Goals: Discuss what are the short-term and long-term business goals and how do you plan to achieve them. 

Competitor Analysis: Conduct an analysis of your direct and indirect competitors. A SWOT analysis of your competitors can help you identify opportunities for creating your competitive advantage. 

Market Analysis: Discuss market conditions in your industry. Is your target industry seeing a growth trend or a decline? What are the driving factors for growth in your industry?

Product and Services: Introduce the products and services of your business, how your product or service works, how you will price them, and what is your sales and distribution strategy for your products or services. 

Operational Plan: Explain your operation plan and discuss how you plan to run your business. The operation plan will discuss organizational structure, team working, and almost all aspects of business operations. 

Business Structure and Management: Introduce business managers and key employees here. Also briefly discuss the legal structure of your business like if you are C-corp, S-corp, LLC , etc. 

Financial Analysis: Discuss initial business costs, running cost, business break even cost, the amount of funding you need and how you will spend that funding. Also create a financial forecast for your business. 

Marketing and Sales: This section will include the marketing and sales plan for your products or services.

Try to make it detailed so that the bank or your lender can understand how you will make your business profitable and if you will have solid capacity to pay back the loans. 

Appendix: Anything you didn’t or couldn’t mention in the previous business plan sections will go here. For example, you can include extended financial reports, research about your industry, detailed CVs of your team and management, etc. 

Download Free Example Business Plan for Loan

Make business plan for loan quick and easy, use this business plan template for loan. 

A template is an easy and straightforward way to write a business plan. A template gives you step by step instructions on what each business section is about and how to write it. 

Wisebusinessplans offers business plan for bank loan template that guides you with questions in every section of the business. Simply answer the questions in each section and your business plan will be ready in no time. 

These are the steps to writing a business plan for small business loan with a template: 

Collection Business Information : Make business information available, keep business documentation at hand as you will need to use data from these documents. 

Write Business Plan : Proceed with writing the business plan. You will not stop until you reach financial analysis. 

Prepare Financial Projections : When you are applying for a debt, the lender will most closely look at your financial projections. Take your time to write financial projections. Make sure you sound convincing.

Also, don’t bury information in the spreadsheets or too much data. State inference you draw from the data first, include necessary financial projections in the business plan and put the rest of them into the business plan appendix. 

Proofread and Revise : Business plan is a thorough document. It is highly likely to leave some holes in the first draft. Proofread your business plan at least once to check for language and factual mistakes. You also come up with a new and better way of saying something. 

Get Second Opinion : Engage a trusted friend, or family member, or an advisor and get their opinion on your business plan. Their unique perspective will force you to improve it,

Sample Of Business Plan For Loan And Funding 

Want to see a sample on the quest of ‘how to make a business plan for a loan’, check the link below.This  business plan for bank loan example will help you see how an actual business plan for a bank looks like and what is the end-product you are working towards. 

Business Plan for Loan

Get this simple business plan template and make better business plan

 A business plan is essential when applying for a loan as it provides lenders with a comprehensive understanding of your business, including its objectives, financial projections, market analysis, and operational strategies. It demonstrates your preparedness and increases the likelihood of securing funding.

To write a business plan for a loan, start by outlining your executive summary, company description, market analysis, products or services, marketing and sales strategies, organizational structure, financial projections, and appendices. Utilizing a free business plan template can help guide you through the process.

 Free business plan templates are widely available online. You can search for reputable websites or organizations that offer templates specifically designed for writing business plans for loans. These templates typically provide a structured format and guidance to ensure you include all the necessary components.

The financial projections section of your business plan should include a sales forecast, cash flow statement, profit and loss statement, and balance sheet. It is important to provide realistic estimates based on thorough market research and a detailed understanding of your business’s financial performance.

Absolutely. Seeking assistance or feedback when writing your business plan for a loan is highly recommended. You can consult with business advisors, mentors, or industry experts who can provide valuable insights and help ensure your business plan is comprehensive, well-structured, and compelling to potential lenders.

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How to write a business plan for a bank loan?

Whether you need a bank loan to start up a new business, grow an existing business or anything in between, writing a business plan can help make it a reality!

It involves outlining your goals and explaining how you plan to achieve them. A professional business plan is crucial to obtaining a bank loan and planning your outlook for both the short and long-term future.

Yet, most entrepreneurs view writing a business plan as a daunting task. But, it doesn't have to be!

In this guide, we explain what writing a business plan for a bank loan entails, why you need one, what tool you should use, and what content should be included.

Ready? Let's get started!

In this guide:

What is a business plan?

Do i need a business plan to secure a business loan, do banks actually look at business plans or is it just a box-ticking exercise, what do banks look for in a business plan, what tool should i use to write a business plan for a bank loan, what does a business plan for a bank loan look like, do i need a 3 or 5 year business plan for a bank, how long does a business plan for a bank loan need to be, key financial metrics and ratios banks look at when deciding on a loan application, examples and templates of business plans for a bank loan, pdf vs. powerpoint pitch: what format should you use to present your business plan to the bank, can i apply for multiple loans at the same time.

• Is it worth using a credit broker to apply to multiple lenders?

How long does the loan approval process usually take?

Key takeaways.

A business plan is a written document that contains two key parts:

• A written presentation that outlines what the company does, its medium term objectives and explains how it plans to achieve them.
• A financial plan that includes a cash flow statement, profit and loss statement and a balance sheet.

To get a business loan approved you need to convince the lender that your business will be able to repay it.

Regulated lenders also have legal obligations to demonstrate to their regulators that they are lending responsibly, meaning that your business can afford the loan.

Therefore, whilst a business plan is not strictly necessary to obtain a business loan, most banks will likely ask you to provide one, as it provides an objective way of assessing your borrowing capacity and to demonstrate affordability.

Imagine the following situation, a business borrows £100k from a regulated bank, and then goes bust. The regulator decides to investigate the bank. The bank can then provide the business plan to help demonstrate that the loan was affordable and that it behaved responsibly.

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Most banks will look at your business plan when you hand in a loan application. How in-depth the bank looks at it though will depend on whether you are borrowing against assets or cash flow.

Asset-based lending

Borrowing against assets involves lending money to businesses whilst using their assets as collateral. These loans are also called secured loans.

Secured loans help reduce risks for lenders, they can seize the collateral if the borrower is unable to repay and sell the asset to recoup part of their losses. That's what happens with mortgages, for example.

Banks usually have pre-set loan-to-value ratios (LTVs) for the most common types of assets (property, equipment, vehicles etc.).

A loan-to-value assessment simply compares the appraised value of your asset against the value of the business loan.

For example, if you're buying a car worth £10,000 and the LTV ratio used by the bank is 70%, they can lend you up to £7,000 and will take the car as collateral.

The bank still needs to assess that you can afford the £7,000 business loan. They might ask you for a business plan, but might decide not to do so given that it's a small amount. They might simply look at your trading history or ask for a personal guarantee from the business owner instead.

BDC Bank - a Canadian bank - says that "financial institutions don’t use the same loan-to-value ratio for all asset types because of different asset liquidity levels".

In layman's terms, liquidity means how easy it is to sell the asset. If it's a delivery van, it's very easy as there is an established secondhand market (high liquidity), if it's a chemical plant it might take up to a year (low liquidity).

In a nutshell, the easier it is to sell the asset (if it needs to be seized), the higher the loan amount.

According to BDC Bank , likely LTV ratios for common asset types are:

• Marketable securities (high in liquidity): 90%
• Accounts receivables: 75%
• Commercial and industrial real estate: 65% to 100%
• Inventory (low in liquidity): 50%.

Capital Source Group - an alternate lender - says that some banks require a down payment of up to 20% of the market value of the equipment, referring to firms seeking finance to purchase key equipment, and mentions an indicative baseline LTV ratio of 50%.

Cash-flow-based lending

As we've seen above, asset-based lending is relatively straightforward, and lower risk as the asset is used as collateral. The decision making is more complicated if your business borrows against cash flows (for e.g. working capital purposes).

Cash-flow-based borrowing involves lending money to businesses based on their predicted cash flows. The bank has to assess how much you can borrow based on historical and projected financials.

Doing so requires to have a clear understanding of the future cash flows of the business, which can only be obtained through a business plan.

Most banks ask for business plans when you apply for a business loan because they need it to understand:

Who the borrower is

Whether or not there is collateral.

• If there is a trading history that supports the cash flow forecast
• What borrowing capacity and affordability can be inferred from the forecast

Firstly, the bank has to understand what entity or person it is lending money to. For example, if you take over a business, you could buy either its assets or shares.

If you were to buy their assets, a new company would likely be created but if you were to purchase their shares, you could do it directly or via a holding company (likelier option).

Depending on which option you choose, the bank has to decide whether it's lending to your current business, yourself or the holding company. The answer to this question then determines the level of risk the bank is undertaking.

Next, the bank has to decide whether or not there is sufficient collateral. Can it secure the loan against the business assets or does it need to request a personal warranty from the business owner(s)?

It will assess:

• Whether or not your current business has any assets that can be used as collateral
• If you, the business owner, have a house or cash in the bank or can offer a credible personal guarantee
• Whether or not the holding company will provide its shares as collateral or if it needs to ask its shareholders for a personal guarantee (or both)

Once the bank understands the value of the security, it can better estimate the borrowing capacity of the entity.

Does the trading history support the cash flow forecast

The bank will want to know if there is any trading history to support your cash flow forecast.

If there isn't, it becomes harder to judge and riskier from a lender's viewpoint.

Borrowing capacity and affordability: total indebtedness and credit metrics

Lastly, the bank will estimate your business credit score by taking into consideration: whether or not you have any outstanding debt, what your past repayments were like, and credit metrics such as fixed charge coverage ratio, net debt-to-equity ratio, and interest coverage ratio (we'll detail these 3 ratios later in this guide).

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

Writing a business plan can be both tedious and difficult if you start from scratch. Luckily for you, online business plan software can help you write a professional plan in no time.

There are several advantages to using specialised software like The Business Plan Shop:

• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can be inspired by already written business plan templates
• You can easily make your financial forecast by letting the software take care of the financial calculations for you
• You get a professional document, formatted and ready to be sent to your bank
• You can easily compare your forecast against actuals from your accounting system to ensure you are on track to deliver your plan, and adjust your forecast to keep it up to date as time goes by

If you are interested in this type of solution, you can try our software for free by signing up to The Business Plan Shop today .

There are seven key sections that any business plan for a bank loan must include:

• Executive summary
• Company Overview
• Products and services
• Market analysis
• Financial projections

Let's have a look at each one in more detail.

1. Executive summary

Your executive summary should provide the bank with a quick snapshot of your business (who you are, what you sell, and what your financial projections look like). Remember that this is the first section of your business plan that they will look at - you need to keep them interested and do not need to go into depth.

You should also include details such as the loan amount sought and its purpose, providing the bank with a clear understanding of how the funds will be utilized to support your business's growth and operations.

For example, if you're a small manufacturing company seeking a loan to purchase new equipment, your executive summary would outline the specific amount needed for equipment acquisition and how it will contribute to increasing production capacity and efficiency.

Above is an example of how the "Our Ask" section which details the funding requirements might look like. This image was taken from one of our business plan templates .

Additionally, the executive summary may highlight any collateral or security offered to mitigate the lender's risk.

This could include assets such as real estate, equipment, inventory, or accounts receivable that you're willing to pledge as security for the loan.

By clearly outlining the collateral available to secure the loan, you demonstrate your commitment to fulfilling your financial obligations and provide assurance to the bank regarding the loan's repayment.

Moreover, the executive summary may touch upon the key terms and conditions your business is willing to accept, such as interest rates, repayment schedules, and loan covenants, to ensure the loan aligns with your business's financial objectives and capabilities.

For instance, if you're a small retail store seeking a loan to open a second store, you may try to negotiate a loan repayment holiday to defer the principal repayments until after the second store has started trading in order to improve cash flow.

2. Company overview

In this section, you should explain what structure your business takes up (sole trader, partnership or limited liability company). This way, the bank understands whether or not you are liable if your business defaults on its loan. If you are not they might ask you for a personal guarantee.

If you are a partnership or limited liability company, state who your partners are and what percentage of the business they own. Also, outline any skills and experience they have that make them suitable for their role.

Finally, you should state where your business(es) are located and why that particular location was chosen (for example, it could be because of the parking slots available or transport links, making it very accessible for potential customers).

3. Products and services

You should include a detailed list of the products or services that you sell. Whilst you don't have to specify every single item or service, you should aim to include all of the key ones.

For example, for a hair salon, this might be hair care, washing, stylish haircuts, combing, hair colouring, waving, and hair straightening.

4. Market analysis

The market analysis section of your business plan for a bank loan is where you bring together your local and national market research. Using charts and graphs along with text makes it easier to illustrate your points clearly.

You should also state who you plan to target and the competitors in your local market. For example, if you were a coffee shop business, you could target people seeking a takeaway coffee, those looking for a lunch or snack or people looking for a place to work.

Finally, you should state the regulation in effect in the local market and whether there are any plans to make changes in the future (by the council for example).

5. Strategy

Your strategy section helps explain how you plan to make your business a success. Both marketing and pricing strategies feature in this section.

Explain how you've determined your prices and whether or not they differ from your competitors. Remember that this will depend on your overall pricing strategy (cost-plus pricing, competitive, price skimming, etc.).

Your marketing plan should explain how you plan to attract and retain customers. For example, you could have an attractive storefront with your logo to encourage potential customers to visit inside. You might also offer loyalty cards (for example, buy 3 burgers, get the fourth one free).

Finally, key milestones must also be outlined so that both parties are aware of what needs to be achieved within an agreed-upon timeframe along with measures taken against any foreseeable risks and mitigants related thereto.

6. Operations

The operations section of your business plan for a bank loan should include information about your staffing team. List any current and future recruitment plans, employee skills, experience and what roles they are going to take up.

Plus, you should state what suppliers you chose and why. For example, you might have chosen a particular supplier thanks to their eco-friendly stance or brand reputation.

7. Financial projections

Arguably the most important section in your business plan for a bank, your financial projections help the bank decide whether or not they should lend to your company.

This section includes your balance sheet, profit and loss statement and cash flow forecast. Figures from these three statements are used to compute key ratios (see the section below).

Profit and loss statement

A projected P&L statement shows how much money the company might make and how much it will grow in the future.

It helps stakeholders understand how successful the company could be.

Balance sheet

A balance sheet shows what your business owns (assets), what it owes (liabilities), and what has been invested by the owners (equity).

Looking at a balance sheet enables investors, lenders, and business owners to assess the capital structure of the business.

One key aspect of this analysis is achieved by calculating key liquidity (short-term) and solvability (long-term) ratios to understand if the company can pay its debts as they fall due.

Cash flow statement

A projected cash flow statement is a document used to plan out how much cash your business will generate (inflows) and spend over a certain period (outflows).

This document shows the expected cash flows from the operations, investments and other financial activities.

Having this information can help you decide how much money your business needs to save for future expenses or investments, as well as anticipate potential cash shortfalls.

When seeking a bank loan, one common question that arises is the duration of the business plan required.

Understanding whether you need a 3-year plan or a more detailed 5-year money lending business plan can impact your credit application process.

For startups, and most small businesses, a 3-year business plan strikes the right balance between providing a clear vision of the future and not overwhelming with excessive detail.

This shorter timeframe is also often preferred by banks as it allows for a focused projection of your business's trajectory without straying too far into the unknown.

For these reasons, three-years is the de facto standard business plan duration for a loan application.

That being said, it might make sense for businesses to use a 5-year business plan in certain situations. For example when there are delayed cash flows because of a longer development or sales cycle or when the loan is used to fund significant capital investments.

Consider a manufacturing company investing in a new factory to increase production capacity. A 5-year plan would detail the initial investment and leave enough time to show the expected returns and the long-term impact on revenue, costs, and market position.

This longer-term view offers a more comprehensive picture of your business's growth potential and can demonstrate to the bank that you have a clear strategy for sustained success.

In summary, whether you opt for a 3 or 5-year business plan depends on the nature of your business, its growth trajectory, and the level of detail required to support your loan application.

Like most business plans, there's no specific number of pages that yours must have. A good rule of thumb, however, is to keep it between 15 and 35 pages.

As long as you've covered all of the key sections, ranging from the executive summary to the financial projections, your business plan for a bank loan should be good to go.

Remember, quality is more important than quantity.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

It's worth noting that ratio targets set by lenders are industry dependent.

There are usually three key financial ratios that banks calculate before lending money:

1. Fixed charged coverage ratio

This solvency ratio assesses how much headroom a business has over its upcoming debt repayments.

It is calculated by dividing the Cash flow available for debt service (or CFADS), which measures how much cash flow is available to pay off debt obligations, by the amount to be paid to service the debt (interest plus principal repayments).

It is one of the main ratios used by lenders to assess the borrowing capacity and the financial risk of a given business.

For businesses utilising bank debt, lenders usually expect the fixed charge coverage ratio to be above 2.0x, which implies that the business is expected to generate twice as much cash as is needed to service the debt, leaving a healthy buffer.

In any case, the ratio should be above 1.0x, below 1.0x the business is not generating enough cash to service its debt which puts lenders at risk.

For example, if your business records a CFADS of £500,000 and total debt service amounting to £250,000 (£50,000 of interest payments, and £200,000 of principal repayments), it will have a fixed charge coverage ratio of 2.0x.

2. Debt-to-EBITDA

This solvency ratio is used to assess the level of debt and borrowing capacity of the business. It compares the level of debt to the firm’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), used as a proxy for the operating cash flow.

For example, if your company has debt worth £20m and an EBITDA of £5M, your debt to EBITDA ratio would be £20m/£5m = 4.0x.

In simple terms, a company with a debt-to-EBITDA ratio of 4.0x would need at least 4 years to repay its debt. Whether or not this is too high will depend on the sector and the risk appetite of the lender.

3. Interest coverage ratio 

This solvency ratio is commonly used by lenders to measure a business's ability to pay interest on its debt. It compares the firm’s EBITDA, used as a proxy for the operating cash flow, with the amount of interest expense due in a financial year. 

Let's assume that you are writing a restaurant business plan for bank loan. Your business has an EBITDA of £500,000 and interest expenses amounting to £50,000, meaning it will have an interest coverage ratio of 10.0x.

The rationale behind this ratio is that, if the company was to default on its debt, lenders could potentially agree to delay the principal repayments as long as the company remains able to at least pay the interest. In that scenario, their capital would remain at risk but lenders would still be able to earn a return.

The higher the interest coverage ratio the better. Targets set by lenders are industry dependent. An interest coverage ratio higher than 4.0x is generally a good starting point.

Most of the business plan templates offered by The Business Plan Shop are examples of companies seeking bank loans and so can be used to structure your own plan.

We have templates to fit various industries including hospitality, retail, services, construction, industrials and more.

When preparing to present your business plan to a bank, one crucial decision is choosing the right format.

Should you go with a traditional PDF document or opt for a more dynamic PowerPoint pitch?

Using a PDF format is usually recommended to present a money-lending business plan. What matters to the bank is the content of your document, and the PDF format offers a comprehensive and structured way to present your business's details, financial projections, and strategies.

This format allows you to include detailed written explanations, charts, and graphs, providing a thorough overview of your business to the bank.

PDFs are particularly suitable for conveying complex information in a clear and organized manner, making it easier for bank officials to review and assess your loan application.

Does it mean that PowerPoint should be avoided at all costs?

Not necessarily, a PowerPoint pitch offers a visual and concise way to present the main takeaways from your business plan to the bank, and could therefore be used to complement your PDF document.

This format allows you to highlight key points, trends, and projections using engaging visuals, bullet points, and diagrams.

PowerPoint presentations could be effective for capturing the attention of bank officials during meetings or presentations, enabling you to convey your business's essence and potential compellingly.

In conclusion, a business plan in PDF is expected when presenting a business plan to the bank, but a PowerPoint can also be provided alongside.

As a small business owner seeking financing, you may wonder if it's possible to cast a wider net by applying for multiple loans simultaneously.

While it may seem like a strategic approach to increase your chances of securing funding, there are important factors to consider before pursuing this avenue.

Impact on your credit score

The first factor you need to consider is the potential implications for your credit score, financial stability, and relationship with lenders.

Applying for multiple loans within a short timeframe can result in multiple hard inquiries on your credit report, which may lower your credit score and raise red flags for lenders.

What happens if your business loan request is denied?

The second factor you need to consider is what happens if your initial business loan requests are denied.

Despite your best efforts, there's always the possibility that your business plan for a bank loan may not be enticing enough.

If your business plan fails to meet the lender's requirements or to convince them, it could be worth revisiting and refining your business plan, addressing any weaknesses or gaps highlighted by the lender, before submitting another application to another bank.

For these reasons, it is usually more prudent to approach lenders one by one, to take on board their feedback and wait for a successful offer before playing the market to find the best offer.

Is it worth using a credit broker?

Navigating the loan application process can be daunting, especially when considering multiple lenders.

One option to streamline this process is to enlist the services of a credit broker.

However, it's essential to weigh the benefits and drawbacks of using a credit broker compared to applying to banks independently.

Let's delve into what a credit broker is and whether it's worth utilizing their services for your financing needs.

What is a credit broker?

A credit broker is a professional intermediary who assists individuals and businesses in finding suitable loan options from multiple lenders.

These brokers have extensive knowledge of the lending market and can help match borrowers with lenders that align with their financial needs and preferences.

Credit brokers typically charge a fee for their services, either upfront or upon successful loan approval.

For example, if you're a small business owner in the construction industry seeking financing for a new project.

Instead of approaching individual banks on your own, you'd engage a credit broker to help you navigate the lending landscape.

The broker evaluates your business's financial situation, objectives, and borrowing requirements, then identifies and presents you with tailored loan options from various lenders, saving you time and effort in the process.

Benefits and drawbacks of using a credit broker vs applying to banks independently

Using a credit broker offers several potential benefits, such as access to a wider network of lenders, personalized loan recommendations, and assistance throughout the application process.

Brokers can also negotiate on behalf of borrowers to secure favorable loan terms and conditions.

However, it's essential to consider the drawbacks as well, including the cost of using a broker, the potential for conflicts of interest, and the risk of relying solely on the broker's advice without conducting independent research.

For example, if you were a small business owner in construction, using a credit broker may provide access to specialized lenders familiar with the construction industry's unique financing needs.

The broker can negotiate competitive interest rates and favorable repayment terms, ultimately saving the business owner money and time.

But, you must carefully weigh the broker's fee against the potential savings and ensure transparency in the broker's recommendations to make an informed decision.

In summary, whether it's worth using a credit broker to apply to multiple lenders depends on your specific financial situation, borrowing needs, and preferences.

While brokers offer valuable expertise and assistance, it's essential to evaluate the costs and benefits carefully and consider alternative approaches before making a decision.

Understanding the timeline for the loan approval process is crucial for effectively managing your business's financial needs and expectations.

While the duration can vary depending on various factors, having a general understanding of the typical timeline can help you plan accordingly and avoid unnecessary delays.

Let's explore what factors may influence the timeline for the loan approval process.

The loan approval process typically involves several stages, including application submission, review and assessment by the lender, underwriting, and final approval.

The duration of each stage can vary depending on factors such as the complexity of the loan application, the lender's internal processes, and external factors such as market conditions or regulatory requirements.

While some loans may be approved relatively quickly, others may require more time for thorough evaluation and due diligence.

For example, suppose you're a small business owner in the manufacturing sector seeking a term loan to expand your production facility.

After submitting your loan application to a bank, the initial review and assessment may take anywhere from a few days to several weeks, depending on the lender's workload and responsiveness.

Once the application passes the initial review stage, it undergoes underwriting, where the lender evaluates your business's creditworthiness, financial stability, and repayment ability.

This stage can also vary in duration, ranging from a few days to several weeks, depending on the complexity of the loan and the thoroughness of the underwriting process.

Banks know how long their processes usually take so they will be able to give you a clear timeline when you apply. They also appreciate that you may take your business elsewhere if they are too slow to respond, so they usually try to be as fast as possible to be competitive.

On your side, you can speed up the timeline by making sure you have all the documents ready beforehand (including the various documents needed to clear anti-money-laundering checks), and by staying proactive and engaged throughout the process and working closely with your lender.

Now that we've covered various aspects of crafting a business plan for bank financing, let's summarize the key points to remember:.

• A business plan is mandatory in order to secure a bank loan.
• Use a business plan software (such as The Business Plan Shop) to ensure you write a professional business plan with all the information that banks expect to see.
• Choose a 3-year plan presented in PDF, unless advised otherwise by the bank.
• Take time to understand the loan application process before submitting your application.
• Be prepared for the possibility of your initial loan request being denied, and know how to address and improve your business plan if it fails to secure funding the first time.
• Remember that banks look at credit metrics in different ways, a rejection by one lender doesn't mean you won't get approved by another.
• Consider using a credit broker to apply to multiple lenders if their services align with your financing goals.

We hope that this guide has helped you to better understand how to write a business plan for a bank loan. Do not hesitate to contact us if you still have questions.

Also on The Business Plan Shop

• How investors analyse business plans
• Business plan vs budget: what's the difference?
• Business plan for grant application

Know someone looking to take out a bank loan for their business? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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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.

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
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• What Is a Marketing Plan? Types and How to Write One 5 of 25
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• Business Plan: What It Is, What's Included, and How to Write One 7 of 25
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• 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 for April 2024 17 of 25
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• What Is an LLC? Limited Liability Company Structure and Benefits Defined 20 of 25
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Business plans for bank & sba loans, when it comes to bank and small business administration (sba) loans for startups and acquisitions, a business plan is the cornerstone of your funding eligibility..

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Unlocking business potential with sba-backed loans, bank & sba loans offer a powerful springboard for budding entrepreneurs and established businesses to launch and grow ventures. .

Starting a business journey is a monumental step, and the right financial backing can make all the difference . Securing a business loan, especially one guaranteed by the Small Business Administration (SBA), comes with its set of stringent standards . Central to these requirements is the necessity of a comprehensive business plan . At Masterplans, we recognize the significance of this document and the rigorous standards it must adhere to, ensuring your business is set on a path to success .

“ I’m out there trying to find real estate and sign leases and hire management teams. I don’t have time to write the business plan myself.

Masterplans presented me with an expert piece of work that displayed everything i'm trying to accomplish in the next five years.”.

Travis Grappo Owner/Operator, Oak House

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With 18,000+ business plans crafted across diverse industries, here's why savvy entrepreneurs consistently choose to partner with us when they seek bank funding..

Experience & Expertise

For over two decades, Masterplans has had the privilege of turning the dreams of founders into reality by crafting business plans ready for both traditional bank lending and the SBA loan application process. 

Award-Winning Excellence

Our reputation as an award-winning firm is built on our unwavering commitment to quality and customer satisfaction. We take immense pride in the feedback from lenders who consider our business plans the best they've ever seen.

Proven Track Record

Our approach is grounded in enterprise-level research and analysis from pay-to-access platforms like IBISWorld, Esri, and Statista, ensuring your plan is a tool to obtain business financing and a practical roadmap to achieve your goals.

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Navigate the intricacies of the commercial loan process with confidence, we turn complexity into clarity, saving you time and headaches..

The banking landscape, with its maze of requirements, can be overwhelming and intimidating, especially for those venturing into the SBA loan process for the first time.

With Masterplans by your side, you're not navigating this terrain alone. You benefit from two decades of experience to ensure that you are prepared for your loan interview. Our understanding of the nuances of underwriting eliminates potential headaches, saving you invaluable time, and providing you with a clear path to loan approval.

Download Sample Business Plans ›

Key Sections a Bank & SBA Business Plan

Your business plan is structured so loan officers and underwriters can easily find what they need, while ensuring a cohesive, consistent, and comprehensive overview of your venture..

Executive Summary

You never get a second chance to make a great first impression. An Executive Summary provides a concise yet compelling snapshot of your venture , ensuring lenders immediately grasp its potential and viability. Integral to this is clearly stating your startup costs and the specific reasons why. The Executive Summary should stand on its own, but more than that, it should leave the banker wanting to learn more.

Company Overview

This company description provides a comprehensive overview of your business, highlighting its unique business model, products and services, and competitive advantage. It underscores your business's unique value proposition , its position within the market, and, critically, details of the sources and uses of funds during the startup, expansion, or acquisition phase.

Market Analysis

To secure a bank loan, your business plan must demonstrate deep understanding of your local market and offer a thorough industry analysis to gauge your projections within that context . Masterplans employs industry-leading market research tools , such as Statista, IBISWorld, and Esri's Business Analyst, to ensure that you grasp the broader industry trends as well as the dynamics of your specific target market.

Strategy & Implementation

The "Strategy & Implementation Summary" provides a detailed roadmap of pragmatic steps and tactics essential for reaching your business goals. Included is a synopsis of your marketing plan, meticulously crafted to convey how your business will attract your target customer .

Management Team

At the heart of a business's potential to service a loan is the capability of the business owner and managers. By spotlighting the hands-on professional experience and industry knowledge that prepares them to run and manage the business effectively, Masterplans ensures that a potential lender will have confidence in the leadership's ability to drive consistent performance.

Financial Projections

Masterplans builds a custom five-year financial projection, which includes an income statement, cash flow statement , and balance sheets that are grounded in solid assumptions and drivers. This approach ensures bankers see a realistic and reliable revenue projection , ensuring key metrics like the Debt Service Coverage Ratio (DSCR) are met.

“It was obvious that everyone who worked on the business plan put in a lot of effort and took pride in what they did.

It read so fluidly. every page led into the next, and it was easy for the bank to find the information they needed.”.

Peter Schellinger Owner/Operator, Diversified Land Management

Make SBA Lenders Compete for you

We put you in the driver’s seat, rather than being just another loan applicant, transform yourself into a sought-after client, making banks compete for your business..

A bank-ready business plan from Masterplans not only showcases your company's potential, but also outlines potential risks and offers strategies to address them , reassuring lenders of your proactive approach.

Our team of business plan writers provide small business owners with the leverage to attract multiple lenders, ensuring you get the best possible terms. With Masterplans, you're not just obtaining a loan; collaborating with us means delving into strategic planning that not only secures loan terms to set you up for success, but also ensures you're fully prepared to capitalize on it .

Our Latest Bank-Ready Business Plans

For over 21 years, we've been privileged to collaborate with clients spanning every industry. below are just a few of the 18,000+ business plan projects we've worked on..

Team Member Spotlight

Christina hersey, with over a decade of experience as a business plan writer, christina helps clients understand and exceed the stringent requirements of banks and the sba..

Christina's clients frequently commend her uncanny ability to "get into their head," a talent she seamlessly integrates into her role as Team Lead. She's fluent in English, Greek, and Spanish. Her dedication to excellence ensures that every business plan is not only compliant but also compelling, positioning entrepreneurs for success.

Meet The Team ›

Business plans for sba & bank loans faqs,  we've compiled a list of frequently asked questions to provide clarity on our service and process. if you don't find the answer to your specific question here, please don't hesitate to contact us ., how is the cost of a business plan for bank and sba loans determined.

Our pricing is influenced by several factors including industry type, plan length and scope, variables like multiple physical locations, the intended audience, and your timeframe.

Our bank-ready business plans typically range from $1,800 to $5,100, based on complexity and the team members required. This fee covers an in-depth discovery process, detailed research, professional writing and editing, and advanced financial modeling. We are happy to provide a complete scope of work for your project, free of charge, in as little as 24 hours. Simply contact us to set up an appointment.

For more information about what is included in our engagements, please see our pricing page .

How many pages is an bank-ready business plan?

The ideal length of a bank/SBA-loan business plan is precisely as long as it needs to be, and not a page more. While most bank-ready business plans fall within the 30-45 page range, with around 15 pages dedicated to financial statements, it's essential to remember that quality isn't determined by page count. Evaluating a business plan's merit based solely on its length misses the true value and depth of its content. 

You can see some examples of our bank-ready business plans here .

How long will my business plan project take?

Our projects kick off within 24 hours of receiving payment. From there, the timeline largely depends on your pace and preferences. Some clients prefer a more deliberate and procedural approach, while others are working against tight deadlines. Typically, we can deliver a complete first draft of the business plan within two weeks. We offer both 45-day and 90-day engagement timelines, ensuring ample time to integrate your feedback and steer the direction of the project.

You can learn more about our process and timeline here.

Do you guarantee funding, or accept payment after funding?

Our primary goal is to provide a top-notch business plan that positions clients in the best light for lenders. There are too many other factors involved for us to guarantee funding. We do, however, guarantee that if your bank loan is turned down on the basis of the business plan, we will refund your money in full. (Note: In over 20 years of business plan writing, this has never happened. Not once.)

As far as payments go, all terms are discussed upfront, and payment after funding is not a typical arrangement.

Will you help find funding?

While we specialize in crafting bank-ready business plans, we are not a certified SBA loan broker, which means we don't facilitate the SBA loan application process directly in exchange for a fee. However, over our 21-year tenure, we've fostered relationships with both regional and national banks. As a result, we are often able to make introductions where appropriate.

For those specifically interested in SBA loans, many clients find success working with preferred SBA lenders in your local market. We recommend using the SBA's Lender Match tool to find suitable lenders. You can access this resource at SBA Lender Match .

What experience do I need for an SBA loan?

Experience is a crucial factor when it comes to securing a loan for your business. Most lenders, including those offering SBA-backed loans, require applicants to have a certain level of experience in the industry or business they intend to operate; for example, the SBA typically requires a small business owner to have a minimum of five years of relevant experience. This experience can be in a management or operational role within the industry. If you lack direct industry experience but have other strong qualifications, such as a solid track record in a management or supervisory role in another field, you may still be considered for a loan.

The aim of this requirement is to ensure that you have the necessary expertise to manage and grow a successful enterprise. Lenders view this experience as a strong indicator of your ability to repay the loan and operate a viable business.

For more details on what's required for an SBA-backed loan, you can refer to our comprehensive guide on SBA loans .

Will a bank or the SBA fully-fund my business?

In many instances, SBA loans necessitate collateral as a form of security for the lender. Most SBA loans will require a down payment of 20%, and having assets that can be used as collateral can enhance your loan application. Additionally, demonstrating a personal investment in your business showcases commitment and responsibility, further augmenting your eligibility.

How important is my credit score when presenting my business plan to lenders or investors?

Your credit score plays a pivotal role when seeking financing, especially from traditional lenders like banks. It serves as a numerical summary of your financial reliability based on your past borrowing and repayment behaviors.

Most banks have minimum credit score requirements, often setting a threshold at or above 600. It's common for lenders to have a benchmark of 620. A higher score not only increases your likelihood of securing financing but can also secure more favorable terms for the loan.

Can a bank business plan be used to find an investor?

Generally, the expectations and objectives of investors differ from those of bank lenders. Banks tend to prioritize funding small businesses that foster local job creation, adopting a naturally conservative approach. In contrast, investors typically search for ventures with potential for rapid scaling and significant earnings, inherently embracing greater risk.

However, there are unique scenarios, especially when real estate plays a role , where an investor might be included in the capital stack. In such instances, we are well-equipped and eager to assist in presenting these cases effectively.

Do you use a standard "business plan template" or an "SBA business plan template" when developing plans for clients?

Every business is distinct, and consequently, every business plan we develop is uniquely tailored to that enterprise. While we don't rely on a specific "business plan template" or "SBA business plan template," our vast experience allows us to craft plans with efficiency. By building on our accumulated knowledge, we ensure both customization and efficiency in our deliverables.

Talk With An Expert Today

Leverage over two decades of experience by scheduling a free , no-obligation, 30-minute consultation with  one of our business plan experts..

The Latest from the Masterplans Blog

Are you looking for quick tips and advice on business planning and entrepreneurship.

Our latest blog posts offer valuable insights that cover a range of essential topics – from the art of refining a business idea and how to write business plans for banks, to the qualifications and requirements of SBA lending.

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Despite growth in sectors like artificial intelligence, venture capital funding has seen better days. After peaking at $347.5 billion in 2021, there was a 30% decline in equity...

Going Beyond Writing: The Multifaceted Role of Business Plan Consultants

Most people think of a professional business plan company primarily as a "business plan writer." However, here at Masterplans, we choose to approach this role more broadly and...

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How to Write a Business Plan to Start a Bank

FEB.10, 2024

Bank Business Plan Checklist

A bank business plan is a document that describes the bank’s goals, strategies, operations, and financial projections. It communicates the bank’s vision and value proposition to potential investors, regulators, and stakeholders. A SBA business plan should be clear, concise, and realistic. It should also cover all the essential aspects of the bank’s business model.

Here is a checklist of the main sections that you should keep in mind while building a bank business plan:

• Executive summary
• Company description
• Industry analysis
• Competitive analysis
• Service or product list
• Marketing and sales plan
• Operations plan
• Management team
• Funding request
• Financial plan

Sample Business Plan for Bank

The following is a bank business plan template that operates in the USA. This bank business plan example is regarding ABC Bank, and it includes the following sections:

Executive Summary

ABC Bank is a new bank for California’s SMBs and individuals. We offer convenient banking services tailored to our customers’ needs and preferences. We have a large target market with over 500,000 SMBs spending billions on banking services annually. We have the licenses and approvals to operate our bank and raised $20 million in seed funding. We are looking for another $30 million in debt financing.

Our goal is to launch our bank by the end of 2024 and achieve the following objectives in the first five years of operation:

• Acquire 100,000 customers and 10% market share
• Generate $100 million in annual revenue and $20 million in net profit
• Achieve a return on equity (ROE) of 15% and a return on assets (ROA) of 1.5%
• Expand our network to 10 branches and 50 ATMs
• Increase our brand awareness and customer loyalty

Our bank has great potential to succeed and grow in the banking industry. We invite you to read the rest of our microfinance business plan to learn about how to set up a business plan for the bank and how we will achieve our goals.

Industry Analysis

California has one of the biggest and most active banking industries in the US and the world. According to the Federal Deposit Insurance Corp , California has 128 financial institutions, with total assets exceeding $560 billion.

The California banking industry is regulated and supervised by various federal and state authorities. However, they also face several risks and challenges, such as:

• High competition and consolidation
• Increasing regulation and compliance
• Rising customer demand for digital and mobile banking
• Cyberattacks and data breaches
• Environmental and social issues

The banking industry in California is highly competitive and fragmented. According to the FDIC, the top 10 banks and thrifts in California by total deposits as of June 30, 2023, were:

Customer Analysis

We serve SMBs who need local, easy, and cheap banking. We divide our customers into four segments by size, industry, location, and needs: 

SMB Segment 1 – Tech SMBs in big cities of California. These are fast-growing, banking-intensive customers. They account for a fifth of our market share and a third of our revenue and are loyal and referable.

SMB Segment 2 – Entertainment SMBs in California’s entertainment hubs. These are high-profile, banking-heavy customers. They make up a sixth of our market and a fourth of our revenue and are loyal and influential.

SMB Segment 3 – Tourism SMBs in California’s tourist spots. These are seasonal, banking-dependent customers. They represent a quarter of our market and a fifth of our revenue and are loyal and satisfied.

SMB Segment 4 – Other SMBs in various regions of California. These are slow-growing, banking-light customers. They constitute two-fifths of our market and a quarter of our revenue and are loyal and stable.

Competitive Analysis

We compete with other banks and financial institutions that offer similar or substitute products and services to our target customers in our target market. We group our competitors into four categories based on their size and scope: 

1. National Banks

• Key Players – Bank of America, Wells Fargo, JPMorgan Chase, Citibank, U.S. Bank
• Strengths – Large customer base, strong brand, extensive branch/ATM network, innovation, robust operations, solid financial performance
• Weaknesses – High competition, regulatory costs, low customer satisfaction, high attrition
• Strategies – Maintain dominance through customer acquisition/retention, revenue growth, efficiency

2. Regional Banks

• Key Players – MUFG Union Bank, Bank of the West, First Republic Bank, Silicon Valley Bank, East West Bank
• Strengths – Loyal customer base, brand recognition, convenient branch/ATM network, flexible operations
• Weaknesses – Moderate competition, regulatory costs, customer attrition
• Strategies – Grow market presence through customer acquisition/retention, revenue optimization, efficiency

3. Community Banks

• Key Players – Mechanics Bank, Bank of Marin, Pacific Premier Bank, Tri Counties Bank, Luther Burbank Savings
• Strengths – Small loyal customer base, reputation, convenient branches, ability to adapt
• Weaknesses – Low innovation and technology adoption
• Strategies – Maintain niche identity through customer loyalty, revenue optimization, efficiency

4. Online Banks

• Key Players – Ally Bank, Capital One 360, Discover Bank, Chime Bank, Varo Bank
• Strengths – Large growing customer base, strong brand, no branches, lean operations, high efficiency
• Weaknesses – High competition, regulatory costs, low customer satisfaction and trust, high attrition
• Strategies – Disrupt the industry by acquiring/retaining customers, optimizing revenue, improving efficiency

Market Research

Our market research shows that:

• California has a large, competitive, growing banking market with 128 banks and $560 billion in assets.
• Our target customers are the SMBs in California, which is 99.8% of the businesses and employ 7.2-7.4 million employees.
• Our main competitors are national and regional banks in California that offer similar banking products and services.

We conclude that:

• Based on the information provided in our loan officer business plan , there is a promising business opportunity for us to venture into and establish a presence in the banking market in California.
• We should focus on the SMBs in California, as they have various unmet banking needs, preferences, behavior, and a high potential for growth and profitability.

Operations Plan

Our operational structure and processes form the basis of our operations plan, and they are as follows:

• Location and Layout – We have a network of 10 branches and 50 ATMs across our target area in California. We strategically place our branches and ATMs in convenient and high-traffic locations.
• Equipment and Technology – We use modern equipment and technology to provide our products and services. We have c omputers and software for banking functions; security systems to protect branches and ATMs; communication systems to communicate with customers and staff; i nventory and supplies to operate branches and ATMs.
• Suppliers and Vendors – We work with reliable suppliers and vendors that provide our inventory and supplies like cash, cards, paper, etc. We have supplier management systems to evaluate performance.
• Staff and Management – Our branches have staff like branch managers, customer service representatives, tellers, and ATM technicians with suitable qualifications and experience.
• Policies and Procedures – We have policies for customer service, cash handling, card handling, and paper handling to ensure quality, minimize losses, and comply with regulations. We use various tools and systems to implement these policies.

Management Team

The following individuals make up our management team:

• Earl Yao, CEO and Founder – Earl is responsible for establishing and guiding the bank’s vision, mission, strategy, and overall operations. He brings with him over 20 years of banking experience.
• Paula Wells, CFO and Co-Founder – Paula oversees financial planning, reporting, analysis, compliance, and risk management.
• Mark Hans, CTO – Mark leads our technology strategy, infrastructure, innovation, and digital transformation.
• Emma Smith, CMO – Emma is responsible for designing and implementing our marketing strategy and campaigns.
• David O’kane, COO – David manages the daily operations and processes of the bank ensuring our products and services meet the highest standards of quality and efficiency.

Financial Projections

Our assumptions and drivers form the basis of our financial projections, which are as follows:

Assumptions: We have made the following assumptions for our collection agency business plan :

• Start with 10 branches, 50 ATMs in January 2024
• Grow branches and ATMs 10% annually
• 10,000 customers per branch, 2,000 per ATM
• 5% average loan rate, 2% average deposit rate
• 80% average loan-to-deposit ratio
• $10 average fee per customer monthly
• $100,000 average operating expense per branch monthly
• $10,000 average operating expense per ATM monthly
• 25% average tax rate

Our financial projections are as per our:

• Projected Income Statement
• Projected Cash Flow Statement
• Projected Balance Sheet
• Projected Financial Ratios and Indicators

Select the Legal Framework for Your Bank

Our legal structure and requirements form the basis of our legal framework, which are as follows:

Legal Structure and Entity – We have chosen to incorporate our bank as a limited liability company (LLC) under the laws of California.

Members – We have two members who own and control our bank: Earl Yao and Paula Wells, the founders and co-founders of our bank.

Manager – We have appointed Mark Hans as our manager who oversees our bank’s day-to-day operations and activities.

Name – We have registered our bank’s name as ABC Bank LLC with the California Secretary of State. We have also obtained a trademark registration for our name and logo.

Registered Agent – We have designated XYZ Registered Agent Services LLC as our registered agent authorized to receive and handle legal notices and documents on behalf of our bank.

Licenses and Approvals – We have obtained the necessary licenses and approvals to operate our bank in California, including:

• Federal Deposit Insurance Corporation (FDIC) Insurance
• Federal Reserve System Membership
• California Department of Financial Protection and Innovation (DFPI) License
• Business License
• Employer Identification Number (EIN)
• Zoning and Building Permits

Legal Documents and Agreements – We have prepared and signed the necessary legal documents and agreements to form and operate our bank, including:

• Certificate of Formation
• Operating Agreement
• Membership Agreement
• Loan Agreement
• Card Agreement
• Paper Agreement

Keys to Success

We analyze our market, customers, competitors, and industry to determine our keys to success. We have identified the following keys to success for our bank.

Customer Satisfaction

Customer satisfaction is vital for any business, especially a bank relying on loyalty and referrals. It is the degree customers are happy with our products, services, and interactions. It is influenced by:

• Product and service quality – High-quality products and services that meet customer needs and preferences
• Customer service quality – Friendly, professional, and helpful customer service across channels
• Customer experience quality – Convenient, reliable, and secure customer access and transactions

We will measure satisfaction with surveys, feedback, mystery shopping, and net promoter scores. Our goal is a net promoter score of at least 8.

Operational Efficiency

Efficiency is key in a regulated, competitive environment. It is using resources and processes effectively to achieve goals and objectives. It is influenced by:

• Resource optimization – Effective and efficient use and control of capital, staff, and technology
• Process improvement – Streamlined, standardized processes measured for performance
• Performance management – Managing financial, operational, customer, and stakeholder performance

We will measure efficiency with KPIs, metrics, dashboards, and operational efficiency ratios. Our goal is an operational efficiency ratio below 50%.

Partner with OGSCapital for Your Bank Business Plan Success

Highly efficient service.

Highly Efficient Service! I am incredibly happy with the outcome; Alex and his team are highly efficient professionals with a diverse bank of knowledge.

Are you looking to hire business plan writers to start a bank business plan? At OGSCapital, we can help you create a customized and high-quality bank development business plan to meet your goals and exceed your expectations.

We have a team of senior business plan experts with extensive experience and expertise in various industries and markets. We will conduct thorough market research, develop a unique value proposition, design a compelling financial model, and craft a persuasive pitch deck for your business plan. We will also offer you strategic advice, guidance, and access to a network of investors and other crucial contacts.

We are not just a business plan writing service. We are a partner and a mentor who will support you throughout your entrepreneurial journey. We will help you achieve your business goals with smart solutions and professional advice. Contact us today and let us help you turn your business idea into a reality.

Frequently Asked Questions

How do I start a small bank business?

To start a small bank business in the US, you need to raise enough capital, understand how to make a business plan for the bank, apply for a federal or state charter, register your bank for taxes, open a business bank account, set up accounting, get the necessary permits and licenses, get bank insurance, define your brand, create your website, and set up your phone system.

Are banks profitable businesses?

Yes, banks are profitable businesses in the US. They earn money through interest on loans and fees for other services. The commercial banking industry in the US has grown 5.6% per year on average between 2018 and 2023.

Download Bank Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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