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Don't Cut Corners on your Corporate Credit Business Plan

Apr 8, 2008
Don't cut corners on your business plan or you may not get the credit you need. More and more lenders are really scrutinizing these documents. They feel if you can't commit to your potential business on paper how are you going to do it in reality? Even if you have all the details worked out in your mind, they aren't going to be able to capture those images. You have to get them down on paper so that they will approve your request for funding.

Lenders have to be very careful who they extend corporate credit to. This is due to the statistics being so high for failed businesses. They can't risk giving everyone money that asks for it because so much of it isn't going to get returned. Therefore they have to approve those requests that seem like they can realistically achieve the goals they have outlined in their business plan.

The more specific information you can offer in that business plan the more realistic it makes you appear to the lender. They want to know more than just the basic facts. They want to know more than just how much money you need from them to make it all happen. Do your part to fill in these blanks because if you don't the lender will assume that you don't have very much direction with this idea yet.

Each section of your business plan needs to be separated. Use correct grammar and paragraphs. You can insert graphs, tables, and charts where necessary to offer some visual aids. The introduction of your business plan is the hook so make it one that goes deep into the reader. Tell them why you have been focusing on starting your own business. Don't be afraid to sell yourself here by not acknowledging your skills and areas of expertise.

Always offer a clear summary of your business plan too. This way the lender can easily look at it and get a basic idea of what you want to do. They will then be able to read all of the material at a later date. They can also refer back to your summary when they need to take your loan request to the board for approval.

What strategies so you intend to implement for your business? The more details you can provide the better off you will be. If you have been working on various types of advertising you can add information about all of that too. The structure of your business is something they will want to know about as well.

The financial plan needs to be where you spend a great deal of time on your business plan. This part needs to convince the lender that you will have plenty of profits coming in to repay the funds you borrowed. Try to forecast your overhead and your income for the first three years. You may need to get some people from a professional to complete this part of it.

The overall look of the business plan is important as well. It needs to be well documented and flow very well. It needs to be realistic and offer honest information relating to the business and the market. The more you can show you have great ideas to implement the more receptive the lender will be. There are business loans that get approved and yours needs to be one of them.
About the Author
Robert Bain writes all about small business. Discover the difference between business credit and true corporate credit that the banks are hoping you don't discover.
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