The Small Business Administration (SBA) describes a business plan as a living document that serves as an “essential roadmap to success.” At Wise, we believe that to be true, and we’ve seen, over and over, the difference a well-crafted business plan can make.
Writing and designing a bank business plan to help our clients secure bank funding – arguably one of the hardest parts of being a business owner – is something we’re committed to doing well.
On the other hand, a banker is likely to be quite interested in seeing a contingency plan that will let you pay back the loan, even in the event of a worst-case scenario.
The five things a banker will look for you to address are:1. One of the most convincing things you can show a banker is the existence of a strong, well-documented flow of cash that will be more than adequate to repay a loan’s scheduled principal and interest.
A strong, carefully thought out business plan showcases your commitment to your concept and demonstrates your willingness to put in the time and effort needed to provide your business with a firm foundation.
From compelling, in-depth market research to detailed financials, a Wise Business Bank Business Plan includes everything necessary to support your bid for bank funding.The Bank Business Plan is about 25-30 pages in length, including color charts and graphs, and consists of the following components: Every plan includes our suite of professional services: You’ll receive a document written in Microsoft Word, financials custom-built in Microsoft Excel, and a finished plan laid out in professional graphic programs by skilled designers.Power Point Presentation (Optional): A Wise Business Power Point Presentation helps direct investor attention to the points you most want to emphasize while offering an outline to streamline your presentation to potential funding sources.You’ll need more than a projection of future cash flow, by the way.Most bankers will want to see cash flow statements as well as balance sheets and income statements for the past three or so years.Loan covenants may require you to do all sorts of things, from setting a minimum amount of working capital you must maintain to prohibiting you from making certain purchases or signing leases without bank approval.Be sure to have your accountant, financial advisor or attorney review your loan documents and spell out everything for you very carefully before you sign.Bank loan applications can be almost as long and complete as a full-fledged business plan.Plans and loan applications aren’t interchangeable, however.Bankers can usually be counted on to want minimal, if any, input into how the business is run.Get behind on the payment schedule, however, and you’re likely to find a host of covenants buried in your loan documentation.