1 / 3

3 Ways Your Bank Business Plan Isn’t an Ordinary Business Plan

Be careful when writing your Bank Business Plan, because not every business plan is the same, and there are many things to think about when writing them. To begin with, consider its intended purpose.

Joorneybusinessplans
Download Presentation

3 Ways Your Bank Business Plan Isn’t an Ordinary Business Plan

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 3 Ways Your Bank Business Plan Isn’t an Ordinary Business Plan Be careful when writing your Bank Business Plan, because not every business plan is the same, and there are many things to think about when writing them. To begin with, consider its intended purpose. Is it for internal business organisation, or is it to try to get fundings? Even when looking to gain investment for your business, the difference between getting a bank loan or seed funding from investors will determine how your Business Plan will be written. If you are looking to get a bank loan there are a few things to keep in mind when writing your bank business plan, and it all boils down to what you need to get your loan approved. · · A steady revenue When writing your business plan it is important to consider your audience and what they are interested in. Unlike venture capitalists or angel investors who are looking for an increase in revenue for a higher ROI, loan officers are wanting to see if your business is able to maintain a

  2. steady revenue. Having steady revenue from your company's history in sales, or predicting one in your financial projections, will give enough reassurance that your business is financially stable and fit for repaying a loan. · · A good credit score Just like investors, banks avoid taking risks and lending money to unsuitable borrowers. That is why a credit score is used to calculate if you are the right candidate for a loan. Your credit score is a number between 300 and 850 that determines how reliable you are as a potential borrower. It is calculated using the numbers from your financial history, where many factors are taken into account, such as: · payment history, · amounts owed, · length of credit history, · new credit, · credit mix. The higher your score is, the higher your chances are for receiving a loan and lower interest rates. Because a credit score determines your reliability as a borrower, having positive credit and a strong financial history included in your Bank Business Plan will greatly increase your chances of getting a loan for your business. Or, if your credit score is in the mid to low range, your business plan is a chance to explain that and give reassurance that you can repay the loan. · · Adequate collateral Even if you have a good credit score, loan officers will want to see what assets you are willing to forfeit in the event that the debt is not repaid. Things that can be used as collateral for a

  3. business loan can include vehicles, equipment, buildings and inventory. Your credit score and the amount of the loan will determine the collateral’s value. If the borrowed amount exceeds a certain point, you may be required to pledge collateral that covers 100% of the loan, which may not be the case for smaller loan amounts. There is no other business plan, quite like a bank business plan. They have a very specific objective which determines how they are formulated and what is needed to compose them. All the information included in them revolves around your business's and your own financial stability. Having a good credit score, reliable financial history and suitable collateral is what sets them apart from other types of business plans. So keep in mind these 3 key differences when writing your bank Business Plan.

More Related