If you’re applying for a business loan, you’ve probably heard that you need a business plan. And if you’ve never written one before, the whole thing might sound intimidating.
But here’s the good news: writing a business plan for a loan doesn’t have to be complicated or time-consuming. In fact, most lenders just want to see that you understand your business—and have a clear plan for what you’ll do with the funding.
This guide will walk you through what lenders are really looking for, what sections you need to include, and how to keep things simple, clear, and lender-friendly.
Why Do Lenders Want a Business Plan?
Lenders aren’t expecting a novel or a 50-page proposal. What they want to know is:
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What does your business do?
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Who do you serve?
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How do you make money?
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How will you use the loan?
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How will you repay it?
A solid business plan shows you’ve thought things through. It gives lenders confidence that you’re not just hoping things will work—you have a plan to make it happen.
What to Include in Your Business Plan for a Loan
You don’t need fancy graphics or technical jargon. Just include the key sections below and write clearly. Keep it to 5–10 pages, unless you’re working on a large development or commercial project.
1. Executive Summary
This is a quick overview of your business—what you do, your goals, and how you plan to use the loan.
📌 Tip: Write this last, after the rest of your plan is done.
2. Business Description
Explain your business model. What product or service do you offer? Who is your target customer? What makes you different?
3. Market Overview
Share what you know about your industry and customers. How big is your market? What are the trends? What’s the demand?
4. Operations Plan
Outline how your business runs day-to-day. This includes location, staffing, equipment, suppliers, and key processes.
5. Marketing & Sales Strategy
How do you attract customers? What channels do you use—social media, email, advertising, referrals? Show that you have a plan to grow revenue.
6. Funding Request
Be specific. How much money are you asking for? What will you use it for—equipment, inventory, hiring, marketing? Break it down by category.
7. Financial Projections
Include your expected revenue, expenses, and profits for the next 12–24 months. Don’t worry about being perfect—just show you’ve run the numbers.
📌 Bonus: Include a simple break-even analysis or cash flow projection if you can.
What If You’re a Startup?
If your business hasn’t launched yet, your plan is even more important. Use it to explain your idea, your experience, and how you’ll start bringing in money.
Even if you don’t have past revenue, you can include:
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Your target launch date
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Estimated startup costs
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Pricing strategy
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Sales goals and how you’ll reach them
Don’t Let Perfection Stop You
Remember: lenders aren’t grading your writing. They just want to see that you’ve thought things through. A clear, well-structured plan is better than a perfect one that never gets finished.
And if you’re using a platform like Smarter Business Funding, your plan can also help match you with the right funding providers based on your goals.
✅ Want Help Getting Started?
Download our Ultimate Business Funding Guide to get our free Business Plan Template—plus checklists, credit tips, and funding strategies.
Or if you’re ready to explore your options, Get Pre-qualified (below) and we’ll help match you with funding sources that fit your business.