What Banks Want in a Business Plan (2025 Guide)
When it comes to securing a business loan, your business plan is more than just a formality — it’s your pitch to the people holding the money. Banks aren’t just investing in your idea. They’re investing in your ability to plan, manage risk, and repay the loan. So what exactly do they want to see in your business plan?
At MM Business Plans, we’ve helped hundreds of entrepreneurs get funding by structuring their plans around what lenders actually care about. Here’s what banks are really looking for:
1. A Clear Funding Request
Don’t just say you need money — specify how much, what it’s for, and how it will be spent. Banks want to see:
The exact loan amount
A breakdown of use (e.g., $50K for equipment, $25K for marketing)
Whether it's term debt or a line of credit
Lenders won’t guess. If your ask is vague, your approval chances shrink.
2. Realistic Financial Projections
Banks will scrutinize your numbers. They want to know:
Revenue assumptions are based on real data, not wishful thinking
You’ve included operating costs, debt payments, and taxes
There’s a clear cash flow plan showing you can repay the loan
If your projections are overly optimistic or lack context, expect pushback — or a rejection.
3. Personal and Business Background
Banks assess risk by looking at both your business and you. Your business plan should include:
Your background and qualifications
Your credit history (or a mention that a strong report is available)
Your equity investment (they want to see you’ve put your own money in too)
A strong borrower profile adds confidence — especially for new businesses.
4. A Solid Business Model
A great idea isn’t enough. Banks want to see a complete picture of how you’ll generate revenue and sustain operations. That means:
Who your customers are
Your pricing and margins
How you plan to market and sell
A clear competitive advantage
If your plan doesn't explain how the business works, lenders will assume you haven’t figured it out either.
5. Risk Awareness and Mitigation
Banks expect risk. What they care about is whether you’ve anticipated it. A good plan includes:
A SWOT or SWOC analysis
A section on contingency planning (e.g., how you’ll manage a sales slump)
Any insurance or risk management tools you’ll use
This shows maturity and reduces their perception of lending risk.
6. Proper Formatting and Professionalism
It might sound superficial, but how your plan looks matters. Disorganized or sloppy plans suggest disorganized business practices. Banks expect:
A clear structure with headings and sections
A table of contents
Proper grammar, spelling, and formatting
First impressions count — especially when lenders are reviewing dozens of applications a week.
Final Thoughts: It’s About Confidence
Ultimately, banks want to feel confident that:
You know your business inside and out
You’ve thought through the numbers
You’re a low-risk borrower
You can repay the loan without surprises
A business plan that checks all these boxes doesn’t just tell a story — it builds trust.
Need Help Creating a Bank-Ready Business Plan?
At MM Business Plans, we specialize in writing business plans that get funded. If you're planning to apply for a loan — especially a CSBFL or traditional bank loan — we can make sure your plan speaks the bank's language.
