Five Top Tips For Writing Your Business Plan

FEATURE ARTICLE Business Finance

Updated February 14th 2020

Frank Schiraldi

CIB Finance

Preparing a detailed Business Plan will inform the lender about your business proposal so that they can assess your application as favourably as possible.

 

1. KNOW YOUR NUMBERS

In order to inspire confidence in you as a borrower, it’s important you are familiar with your key financial figures. This includes current income, net profit and expenditure.Include a profit and loss budget, and download a copy of your personal credit file from Equifax.

2. ESTIMATE HOW MUCH FUNDING YOU NEED

Are you looking for funds to help with cash flow and operations on a regular basis, with a larger overdraft limit for occasional use? Or do you need one-off funds to open a new branch or purchase additional equipment?Ensure that you establish all of these factors in your application, including outlining any partners and growth strategies.

3. PROJECT YOUR CASH FLOW

You can use this to prepare pro-forma statements, or projections of what your business will make going forward, making adjustments based on past trends or future assumptions. Make sure the lender clearly understands your assumptions.

4. PROVIDE PROOF OF LOAN SECURITY

A lender will evaluate your risk factors to determine if you and your business are a good investment. Consider the maximum payment you can afford and as your finance broker, we can advise you on whether you should offer collateral (assets such as property) to secure your loan.

5. ASK QUESTIONS

As your finance broker we will shop around on your behalf to find out what products are on offer. If you’re already a customer with one lender, as your broker we can still act on your behalf to achieve the best result for you.

IMPORTANT: Information contained in this newsletter is not advice. Clients should not act solely on the basis of material contained in this bulletin. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. The bulletin is issued as a helpful guide to our clients and for their information.