Has your bank advisor asked you to provide a business plan for your planned venture? If so, you are in the right place. From this article you will learn what a business plan for a bank should look like and how to get one quickly. Remember that a business plan is an essential part of a loan application in most Polish banks. It is especially needed when you apply for an investment loan for a new investment.
A business plan for a bank is not only a requirement, but more importantly an opportunity for an entrepreneur to thoroughly analyze his business. Carefulness and commitment to its preparation can convince the bank to invest and give the company a chance to grow.
For a bank, granting a loan is first and foremost an investment and a risk. The bank wants to be sure that the borrowed amount will come back to it within a certain period of time with interest. To assess this, it needs to understand the customer's business, its potential and risks. This is what a business plan analysis is for.
The bank wants to understand how your business operates and what plans it has for the future. A business plan provides information about the industry you operate in, your competition, potential customers, and your business strategy. It allows the bank to understand whether your business has the potential for growth and whether you can repay the loan.
Developing a solid business plan takes time and commitment. For the bank, it proves that the entrepreneur is serious about his business and is prepared to do business. The bank wants to work with responsible and committed entrepreneurs.
A business plan for a bank is an analysis of the current economic and legal situation of an enterprise, together with a projection of development in the coming years. It includes a description of already existing conditions of financial nature, as well as a picture of future activities and results. It is necessary to demonstrate the relationship of the planned investment project with the need to use external financing, for example, in the form of a loan. Importantly, the company must prove in the business plan that it will be able to repay the borrowing.
Business plans for banks are no different from classic business plans. What you should keep in mind when writing this type of business plan is to include in the financial projections the entire financing period (loan period). This type of calculation is presented in excel as standard. It is worth using the support of a financial analyst here, who is familiar with financial modeling.
The characteristics of an investment project, in addition to the financials (ratio analysis, income statement, cashflow - cash flow statement, balance sheet, etc.), also includes a descriptive part. This is a general characterization of the enterprise. It includes such elements as, among others:
When you are in doubt about the expected form of a business plan, you can ask your bank's credit counselor about the requirements. Most business plans written for banks follow a similar structure.
Sample requirements for a business plan from a major Polish bank:
As you can see from the above graphic, the development of a suitable document is a time-consuming process. It is usually worth using the support of external specialists to make the whole thing go quickly and smoothly.
The first step is to obtain from the bank the requirements for the expected content. Alternatively, you can also ask the company you want to entrust with drawing up the business plan. Usually such a company has already created dozens or more bank business plans and is familiar with these requirements.
The second step is to decide whether you want to create a business plan yourself or entrust this task to professionals.
Then you can move on to implementation. To do this, you need to collect the relevant data on the project and perform analyses such as market and competitive analysis.
Based on the data at hand (including financial assumptions), a document is prepared, which will then go to bank analysts. If there are no comments from the bank, the process is complete. If the bank makes comments then you usually have the opportunity to make the expected corrections. This is a more favorable situation compared to, for example, applying for grants, where it is usually not possible to change the content of the application (business plan) once it has been submitted.
When submitting a loan application, an entrepreneur is often required to submit an additional set of documents. It is best to find out at the beginning what the financing institution expects in order not to risk rejection of the loan application.
Usually these are financial documents of the company confirming the good financial situation in recent years. For example, in the form of financial statements.
A good business plan should also be supplemented with documents confirming the entrepreneur's ability to contribute, so, for example, a current account balance.
In some cases, collateral in the form of a mortgage or third-party surety is also required.
In addition, when you plan to invest in an industry that requires additional permits, such as a concession or building permit, the bank may ask you to report such documents.
Remember that a business plan, although essential to the process is often not enough to get a loan.
Most entrepreneurs have no experience in writing business plans. Nor do accountants deal with it. Consequently, the business owner has two options. Either create a business plan on his own or entrust this task to external specialists.
Since time is money (and the only resource that cannot be bought or reclaimed), a better option is to entrust the preparation of a business plan to an experienced company. Especially since most entrepreneurs are not competent to create competitive analysis, market, marketing strategy or financial models in excel. It takes a considerable amount of time to learn how to do these things.
If you want to avoid the complications of the bank's comments on your business plan, use external support. Well Done Business has successfully developed nearly 200 business plans for investment loans.
How long does it take to complete a professional business plan for a bank? Usually it is a process that takes a minimum of several days. Remember that the drafting of the document itself should be preceded by the implementation of analysis, collection of necessary information and materials. In the case of our bank business plans, the entire process takes from seven to fourteen days. Much also depends on the client's expectations regarding the level of detail in the document. In other words, whether it should simply meet the minimum requirements of the bank or be a more detailed study. For example, with a volume of 50 - 100+ pages.
Did you know that in addition to the offer of traditional commercial banks, from time to time there are also so-called preferential loans available? Their advantage lies in more favorable conditions for customers. First of all in the interest rate, but sometimes also in the ease of obtaining them (less stringent).
If you are interested in preferential credit, sign up for our subsidy guide: https://dostepnedotacje.pl - then you will no longer miss not only preferential loans available in your region, but also grants and other interesting financial solutions for entrepreneurs. This is the only guide of its kind in Poland.
The primary purpose of creating a business plan for a bank is, of course, to obtain financing efficiently. It is worthwhile to approach this process professionally. In addition, use the need for a business plan also to take a broader view of the business environment such as the market or competition.
When an entrepreneur reflects on every aspect of his business, he has a chance to spot ambiguities, gaps or potential risks. Such analysis can lead to conclusions that are crucial to the company's growth, regardless of whether credit is granted.
Besides, a well-prepared business plan is proof of the entrepreneur's professionalism and commitment. Banks appreciate this approach and see it as an indicator of business management ability and the likelihood of success of the venture.
Finally, the process of creating a business plan can provide an opportunity for an entrepreneur to reflect on his vision and mission, as well as the values that guide his business. By incorporating these elements into the plan, the company can better communicate with potential investors, customers and partners.
In conclusion, a business plan for a bank should not be seen only as a tool to obtain financing. It is first and foremost an opportunity for deep introspection, planning for the future and charting a path for long-term success.
A: A business plan for a bank is a document presenting a description of the planned business venture, its strategy and financial projections, prepared specifically for the purpose of obtaining a bank loan.
A: Key elements include: company description, products/services, market analysis, marketing strategy, management team, operations, financial plan, SWOT analysis, and information on financing needed.
A: While the structure may be similar, the business plan for the bank should focus on the financial aspects, the potential return on investment and how to repay the loan to meet the bank's requirements.
A: The length of the business plan depends on the complexity of the project. However, the quality and clarity of information is more important than the volume of the document. For most banks, it is important that the plan be complete, precise and, above all, credible.
A: Yes, using experts can significantly increase the chances of getting a loan. A professionally prepared business plan will be more convincing to the bank, and experts can help identify and address potential risks.
