Business Plans for Commercial and Industrial Loans

Commercial and industrial loans equated to roughly 2.8 trillion dollars in April 2024. With approval rates on the rise, there’s never been a better time to apply. If you want to apply for a business loan, however, you’ll need a business plan. Take a look below to find out how to write a business plan for a loan.

Executive Summary

An executive summary essentially summarizes your plan. It’s done on a single page, with the information you include being based on the type of business you run. Start-ups will usually use this page to discuss opportunities, their target market and the general strategy for building a business. Start-ups should try and use this page to convey confidence. 

Established business owners should orient their summary page based on past achievements, or growth plans. You may want to begin with the mission statement and provide information about financials, before outlining future goals. 

Industry Analysis

In this section, you'll need to define your industry and focus on current trends. You will inform the reader about your industry and how your business fits in with it. You should also use this section to define your niche. You may also want to define important influences. This could be government regulations or trends

Market Analysis

This page is so important. You will detail the market and who you intend to target. Explain the size of your niche and how many businesses operate within it. Describe how you’re going to target your customers.

Competitor Analysis

In this section, you will need to inform the reader of the current environment. Start with an assessment of your competition, and go from there.

Segmentation

Target market segmentation should be another section within your plan. Identify your target market and provide clear objective strategies. YOu may also want to mention how your services meet the needs of your customers, as this helps to outline how you intend to make the most of your money.

Products Offered

Explain what your business offers, and how your products compare to your competitors. Include pricing, and inform the reader about the equipment or materials you may need.

Marketing Plan

Next, marketing. The lender will now have a good understanding of what you offer, so you need to show how you’re going to market your business. The goal is to provide a reasonable and realistic plan, with your company's revenue goals, and how you intend to achieve them. This is where you'll tell the bank how you make money, so it’s an essential step.

Operations Plan

This details your day-to-day operations, and where your money is going to be spent.  This section should be detail-oriented, as it shows you’ve got a good understanding of your daily expenses.

Financial Plan and Exit Strategy

The final section should include how much you plan to spend, and how much you plan to make each year. Include:

• Cash flow statements
• Capital expenditure budgets
• Balance sheets
• Income statements
• And more

As well as this, you should also include an exit strategy, in case things go wrong. Detail how you’re going to sell your business, or whether you’d have to declare bankruptcy. Information like this helps to show the lender that you have considered all risks. 

Contact Us to Apply for a Business Loan

If you need help applying for a loan, we’re here to help. Call us at 877.433.4241 or 610.337.2464 to speak to our helpful team. We’ll help you get approved for a loan, with favorable terms.