Business Plan

A concise one-to-two page summary of the entire plan. State who you are, what you do, what you are borrowing, why you need it, how much, and how you will repay it. Many lenders read this first — if it does not make the case clearly, they may not read further. Write it last, after every other section is complete.

Legal structure (sole trader, partnership, limited company, group structure), registration number, registered address, trading history, and ownership breakdown including shareholders and their percentages. Include any group or associated companies that are relevant to the funding.

What you sell, to whom, and why they buy from you. Explain your pricing model, margins, and any competitive advantage. If you have intellectual property, patents, or exclusive arrangements, describe them.

Your market size, growth trends, target customers, and competitive landscape. Lenders want to see that you understand your market position. Use credible, sourced data rather than unsupported claims. Identify your main competitors and your differentiation.

Key personnel, their roles, experience and qualifications. Lenders lend to people as much as to numbers — a strong, experienced management team can be the deciding factor. Include brief CVs or biographies for directors and senior managers.

How the business runs day-to-day: premises, equipment, suppliers, key processes, staff structure, and any operational dependencies. If the funding is for expansion or new equipment, explain how operations will change.

The exact amount you want to borrow, the purpose (purchase, refinance, working capital, expansion, etc.), and a detailed breakdown of how the funds will be used. Lenders want to see that the amount requested is justified and properly allocated. Include quotes or estimates where relevant.

How the borrowing will be repaid. For investment property, this is typically rental income. For owner-occupied, it is business cashflow. For development, it is sale or refinance of the completed scheme. Be specific and realistic — lenders will stress-test your assumptions.

Last 2-3 years of statutory accounts (or management accounts if newer). Include turnover, gross profit, net profit, and key balance sheet items. Be prepared to explain any anomalies, declines, or one-off items.

Typically a 2-3 year profit and loss forecast, cashflow forecast, and balance sheet projection. These should be consistent with each other and with the rest of the plan. Lenders will want to understand the key assumptions behind your projections — growth rates, margins, cost inflation. Avoid overly optimistic scenarios.

The key risks facing the business and your mitigation plans. Lenders want to see that you have thought about what could go wrong. Include market risks, operational risks, financial risks, and regulatory risks. Identifying risks honestly builds credibility.