Business plans for financing through banks

There are a lot of things that you need to keep your business running smoothly. However, money is something that you need from the word go and keep needing it if you want your business to grow. Some people manage to save up enough money to fund their own business. In most cases though, your idea for business will require funding from external sources. One of the most commonly used sources of financing are banks. Several banks offer special schemes for small business owners than allows them many conveniences and ease of repayment. However, you first need to convince the bank that your business has great potential for success and profit. It is for this purpose that you will need to submit a detailed business plan to the bank for getting a loan. Here are some tips on how to make a convincing business plan:

1. It’s important for the bank to know that you have a clear idea on what your business is going to be. Create a clear, short, two sentence statement on the purpose of your business. Make it sound appealing yet professional.

2. Mention the name of the owners of the business and then describe why they believe the business will be successful and how it will function.

3. Follow this by providing details such as what the product is, what is the target market, what is the level of demand, who are the competitors and what gives you an edge over them. Make sure these details are well researched as they bank will check them before approving the loan.

4. Provide detailed income, cash flow, sales etc projection for next three years. The forecast for the first year should be monthly while the rest can be quarterly.

5. Give references of would be clients, creditors and so on.

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