MANAGEMENT

Detailed explanation-1: -The backgrounds and experience of the leadership team of your company help lenders make financing decisions. Not all new businesses need a business plan. Lenders require a business plan before they will consider financing a business. Once your business is up and running, you will rarely use your business plan.

Detailed explanation-2: -Yes, lenders will look at the standard factors required of all loan applicants, such as your credit history, credit score, and assets-But business loan lenders will also require a business plan.

Detailed explanation-3: -While your business plan alone won’t be enough to convince investors to back you, no investor will offer you funding without one. If past performance data shows that you’ve historically succeeded, a business and financial plan will show that you will continue succeeding in the future.

Detailed explanation-4: -Business plans can help you get funding or bring on new business partners. Having one in place will help investors feel confident that they will see a return on their investment. Your business plan is the tool you will use to persuade others that working with you (or investing in your business) is a smart decision.

Detailed explanation-5: -Current Financials, projections and cash flow Lenders expect to see the three main financial statements-income, balance, and cash flow-projected monthly for the first year, and annually for a couple of years after that. Cash flow is the most important part of your plan.