How to Make a Business Plan to Get a Loan

An entrepreneur opening a new business venture or an existing small business owner wishing to expand his operation might seek financial assistance through a commercial loan. Generally, commercial lenders require certain qualifiers from an applicant borrower, including a pro forma statement, a business plan, profit and loss statements, balance sheets, a personal and/or business resume, collateral and personal guarantee by the borrower. To obtain a loan for a small business, there are preparatory steps to accomplish.

Step 1 - Gather all financial information

Before writing a business plan, you must have all pertinent information organized. Collect all financial statements, including profit and loss statements, balance sheets and at least three months of business bank statements. Also prepare a list of assets such as inventory on hand, fixtures and equipment. If starting a business, collect your personal bank statements from the last six months and prepare a list of all starting costs such as equipment, inventory and fixture purchases; costs of leasing and build-out; as well as legal costs such as registering the business with the state.

Step 2 - Write a pro forma statement

Hire an accountant to write a pro forma statement, which is a projection of future expenses and earnings and are typically attached to a business plan when applying for a commercial loan.

Step 3 - Create a business resume

A business resume is a document that shows a business' operation range, such as the services or products it provides to consumers and the experience and past business ventures and employment of the owner. If the business does not yet exist, write a personal resume or hire a resume writer.

Step 4 - Create a business plan

Draft a business plan. A business plan is generally about 15 pages and begins with an executive summary--a set of bullet points that show earnings projections and a summary of start-up costs. The business plan details how the company will operate, the products and services it will offer, operating hours, management structure, number of employees, wages and benefit costs, operating costs (such as lease, insurance, licenses and permits) and explains how the business will market itself. Contact a professional business plan writer or business attorney or accountant to write the plan. Or you can download business plan software such as Plan Write or Business Plan Pro.

Step 5 - Apply for a commercial loan

Visit the Small Business Administration website and find an approved commercial lender in your area. Contact the lender and ask what documents are necessary to apply for a business loan.