• Accel Business Funding

What Makes a Good Business Plan for Lenders

A business plan is an essential document for every business. It is also one of the most important documents used by lenders to determine whether your business qualifies for financing.

Here, we will be describing some of key points lenders will want to see in your business plan:

Executive Summary

This section identifies how your company is performing now and how you would like it to grow. Make sure to highlight your company's strengths and why it will be successful.

Company Description

Describe your company and be sure to explain how your products or services provide value to your customers.

Market Analysis

Lenders will want to know more about your market size and your company’s growth potential. Lenders will also want to know how you are setting yourself apart from your competitors. It is best to include percentages of market share of your competitors and your current and projected market share.


In this section, you want to illustrate your organizational structure and have profiles of your management team. Lenders want to see that your management team has the relevant experience and qualifications to help grow your business. It would also be helpful to provide more information on the different departments in your company and how they all function within the company.

Purpose of the Loan

Lenders will always want to know exactly how their funding will help your business. You should be as detailed as possible, showing how receiving funding will help your business grow and how your business can repay the loan. This section is one of the most crucial elements in your business plan.

Financial History

Provide at least 3 years of historical financial data through your balance sheet, income statement, and cash flow statement.

How Revenue Is Generated

Lenders will want assurance that their business loans will be repaid. By explaining how you attract and serve customers, how you sell your products or services, and how you collect payment, you will give lenders a clear image of how your business operates and how you will be able to repay the loan.


Collateral can be a great way to reassure lenders that you can repay a loan, which can lessen qualification restrictions as well as the terms and rates for your financing. Some lenders will also require your business to put up collateral, so it is best to be transparent with the value of your company assets and proving ownership.


Your business plan should also present expected future performance, usually over the next 5 years. Your projections should include forecasted income and expenditure. Make sure to highlight the difference in what would happen without funding and with a lender’s funding.


Your business plan will play a substantial role in determining whether you will qualify for financing. By providing all the information lenders would want in your business plan, you will present yourself favorably to lenders and increase your chances of qualifying for financing.

Accel Business Funding has many different funding options for all businesses and funded many businesses for more than $380 million. When banks say NO, we say YES to funding in 24 hours!


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California's Loans made or arranged pursuant to a California Finance Lenders Law license

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