Business plan for lenders
A business plan for lenders is a written plan that explains how a company operates, generates revenue and presents itself to lenders. BDC calls the business plan the key part of a small business loan proposal, and says its core sections include financial information.
In a loan proposal, BDC says the main part of the plan should describe the history, current operations and strategy of the business. BDC says a plan helps you make a successful pitch to lenders. Whether a given lender asks for one, and in what form, is the lender’s decision. The buyer financing readiness checklist lists what to gather first.
What BDC says it contains
BDC lists a company profile, sales and marketing plans, operations details and financial information as core sections. For a loan proposal it asks for financial statements together with forecasts. Those forecasts are the financial projections.
What to ask the lender
- Whether the lender has its own template or accepts yours.
- How far ahead the lender wants forecasts to run.
- Whether the plan should cover the transition from the current owner.
- Who at the lender will read it alongside your application.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to write an effective business plan
- 02Business Development Bank of CanadaGovernmentHow to prepare a winning business loan proposal
- 03Business Development Bank of CanadaGovernmentBusiness plan template for entrepreneurs
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