Business Plan Chapter 5

Business Plan Chapter 5

Subheading Goes Here

Chapters: 1 2 3 4 5 6 7 8 9 10 11 Oil & Gas publications

Chapter Five: " Guide To Writing A Business Plan For Your Business.”

How Your Loan Request Will Be Reviewed

When reviewing a loan request, the lender is primarily concerned about repayment. To help determine this ability, many loan officers will order a copy of your business-credit report from a credit reporting agency. Therefore, you should work with these agencies to help them present an accurate picture of your business. Using the credit report and the information you have provided, the lending officer will consider the following issues:

Have you invested savings or personal equity in your business totaling at least 25 to 50 percent of the loan you are requesting? (Remember, a lender or investor will not finance 100 percent of your business.)

Do you have a sound record of credit-worthiness as indicated by your credit report, work history and letters of recommendations? This is very important.

Do you have sufficient experience and training to operate a successful business.

Have you prepared a loan proposal and business plan that demonstrate your understanding of and commitment to the success of the business.

Does the business have sufficient cash flow to make the monthly payments on the amount of the loan request?

Even if you are a beginner with no prior knowledge of any business, you can easily raise money for your business using simple Money Raising Strategies for Beginners revealed in “ Proven creative strategies to Raise Money for Small & Medium Business” visit: www.lahoon-ng.com or go direct to www.lagoon-ng.com/sme.htm

2. Owner or Owner-To-Be. State owner(s) name(s), as well as the form and percent of ownership.

State the general and specific nature of the business (i.e.,general -energy-, specific - oil, solar, wind: or general - food; specific restaurant, catering, farming, ice cream parlor, bakery).

State the type of business(manufacturing, service, construction, wholesale, retail,other).

State who buys the product/service and who the final users are (briefly here, because youwill be discussing your customers very thoroughly under Market Analysis Describe how the product/service is sold to customers (walk-in stores,sales representatives, mail order catalogs, telephone orders, etc.).

Describe how and where buyers get the product/service (walk-in stores, mail, delivery, etc.).

b. History. If new, say so. If existing, discuss age of business, prior owners, how acquired and length of time operated by you, image or reputation, number of employees, last year's sales volume and profit and any significant events that have affected the company's development

c. Offices/Plant Give addresses and description of area and building. State whether rented, leased or owned. If rented or leased, state from whom and under what conditions. Describe access to building (major roads/freeways, walking, parking,etc.). Is the location convenient for customers? State business hours. State size of facility (square footage).