Young companies often start their business with good ideas. What most people are missing, however, are sufficient own financial resources. But how can you become self-employed without your own capital? Even though crowdfunding projects are now available to raise money, the most common way is to apply for a loan from banks. For this the creation of a business plan is indispensable. But what do lenders pay attention to when awarding a loan? To put it bluntly: Banks want to read from a business plan that invested money will be repaid in a timely manner. Therefore, founders should consider a few points when writing a business plan to increase the likelihood of lending.
Where to apply for business loans?
One of the most important points that potential investors pay attention to is the founding personality. Because with this stands the whole success of the business project. The business plan itself is, so to speak, the mirror of how intensively the founder has dealt with his idea. Anyone who manages to precisely determine the market, competition and target group and can offer a suitable product for this, proves to outsiders that the competencies are there to implement an idea in a truly profitable way.
This shows that the potential borrower does not stumble blue-eyed into the future, but deliberately plans to counteract potential problems. The business plan provides a detailed SWOT analysis to demonstrate your own ability to identify risks and weaknesses, as well as to plan ahead and carefully.
The logical structure of the business plan
The best business plan is of no use if it is not logically structured and structured. If data and facts are true, but completely out of order in the business plan, this is not a good sign for funders. It makes a huge difference if someone is competent in their own field or can manage a company. Characteristics such as structured and anticipatory thinking are extremely important for business success. And just the latter can be read from the structure of a business plan. The clearer and clearer it is in the presentation as well as the content, the better. This signals to the lenders that the company also has an orderly future ahead of it.
The Executive Summary serves as an introduction and summary of the business plan. If you manage to store the most important information here and also present it in an interesting way, you will be encouraged to read on and arouse the interest of the credit officers. This, of course, creates the best prerequisites for a successful business loan application- Learn More.
A sensible financial plan
In addition to a good structure of the written part, must not be missing a logical financial plan. It must be clear that the company is profitable. Revenues and expenses must be based on realistic calculations and all costs must be taken into account. Especially inexperienced founders often forget important things, such as the deduction of non-wage labor costs or trivial things such as garbage fees. Often there are also unrealistic issues related to marketing. The planned marketing measures must, on the one hand, be appropriate and on the other hand, be reflected as realistic expenditure in the financial plan.
In general, it is better to calculate the finances conservatively, as in retrospect with a minus.
In addition, each bank will want to know how debt and equity are used and how the repayment of the loan is made.
If you are inexperienced here, it would be a good idea to have your financial plan reviewed by a business plan consultancy.
What else you should consider
In order not to leave an unnecessarily chaotic impression, bank discussions should be planned early and the business plan prepared on the agreed date. Anyone who is outraged and appears to have a conversation with incomplete documents unnecessarily reduces the chances of obtaining a loan. So take time to plan the meeting. Arrange in advance of your documents and check with a checklist whether your wallet really contains everything that is required by the respective bank. This gives you additional security and peace of mind that you can use during the conversation.