NEW VENTURE GUIDE
by the UALR Arkansas Small Business Development Center
Lenders somestimes ask for a business plan when you talk with them about a loan for your business. The business plan that you develop as your management and operating guide contains more details than a banker has time to read. The plan, after all, is for your use and helps you stay on track toward the goals you have established for the business. The list below represents the key sections of your plan that address the management, market, and money elements of your proposed business. In evaluating your request for a loan, bankers particularly want the information noted below.
Suggested Contents
1. General Information
Purpose of the loan
Expected benefits of the loan
Amount of money required, including a source and use of all funds in the project
Sources of repayment
Desired repayment terms
List of available collateral, including market values
2. Description of Business
Explanation of planned activities, or history information for existing businesses
Planned changes to business operations, if any
3. Management Information
Personal resume, including a description of any prior management or ownership experience
Key staff, including description of their roles in the business (provide resumes)
Other key advisors e.g., attorney, accountant, insurance agent
4. Market Information
Products/services provided
List of competitors, suppliers and clients/customers
Define market area and method of distribution
5. Financial Information
Balance sheets and income statements (three year-end statements and interim for current year if existing business)
Federal tax returns (past three years)
Projected income statement (minimum of twelve months into future)
Projected cash budget (for same time period as projected income statement)
Summary of key assumptions explaining basis of projections
Personal financial statement
