Here’s How To Write A Bankable Business Plan

ByMohd Azad Jasmi

I have had experience coaching and training numerous companies, government-linked corporations (GLCs), government agencies, and entrepreneurs. Among the most crucial challenges is creating and developing a bankable business plan or business proposal.

While many have taught the criteria for preparing a business plan, few have delved into the specifics of crafting a bankable one. I will not only cover the criteria for a bankable business plan but also go deep into the reasons why many companies face rejections of their proposals. Understanding these reasons is crucial in order to effectively counter them and increase the chances of success.

I analyzed the common pitfalls and shortcomings that often lead to proposal rejections, such as lack of market research, weak financial projections, inadequate competitive analysis, or insufficient clarity in the value proposition. By addressing these issues head-on, we equip you with the tools and strategies to strengthen your proposal and overcome potential obstacles.

My aim is to empower you with the knowledge and insights necessary to develop a compelling and persuasive business plan that not only meets the criteria but also impresses stakeholders and potential investors. Through our in-depth discussions and guidance, you will gain the confidence and understanding needed to navigate the challenges of creating a bankable business plan.

When seeking a loan from a bank to fund your business venture, a well-crafted and bankable business plan is crucial. A strong business plan not only demonstrates your vision and potential but also instills confidence in lenders that your venture is worth investing in.

The format

In this article, we will guide you through the critical steps to writing a bankable business plan that will increase your chances of securing a loan for your entrepreneurial journey.

  1. Executive Summary: The executive summary sets the stage for your business plan and provides a concise overview of your company, its objectives, and the amount of funding you are seeking. Keep it compelling and to the point, highlighting the most critical aspects of your business.
  2. Company Description: This section provides a comprehensive overview of your business. Describe your company’s mission, vision, legal structure, ownership details, and key milestones achieved. Explain the industry in which you operate, its potential for growth, and the target market you intend to serve.
  3. Market Analysis: Conduct a thorough market analysis to demonstrate your understanding of the industry and its trends. Identify your target audience, analyze competitors, and highlight your unique selling proposition. Show the bank that you have conducted market research and understand your customers’ needs and preferences.
  4. Products and Services: Describe your business’s products or services. Explain how they address market demand and provide value to customers. Highlight any competitive advantages or intellectual property you possess that differentiates your offerings from others in the market.
  5. Marketing and Sales Strategy: Outline your marketing and sales approach to attract customers and generate revenue. Explain your pricing strategy, distribution channels, and promotional activities. Include a sales forecast and projections to demonstrate the potential profitability of your business.
  6. Management and Organization: Detail the structure of your management team and their qualifications. Emphasize their relevant experience and expertise, as this will give the bank confidence in your ability to lead the business successfully. Include an organizational chart and highlight any key advisors or board members.
  7. Financial Projections: This section is crucial, as it demonstrates the financial viability of your business. Include projected income statements, cash flow statements, and balance sheets for at least three years. Use realistic assumptions and provide detailed explanations for your financial projections.
  8. Funding Request: Clearly state the amount of funding you are seeking and explain how it will be used to support your business goals. Provide a breakdown of the loan requirements, including working capital, equipment purchases, or expansion plans. Show the bank that you have a solid repayment plan in place.
  9. Risk Assessment and Mitigation: Acknowledge the risks and challenges your business may face and outline your strategies for mitigating them. Address potential industry or market risks and demonstrate your ability to adapt and overcome obstacles.
  10. Appendix: Include any supporting documents, such as resumes, legal contracts, permits, licenses, or market research data, in the appendix. These documents will provide additional credibility and support to your business plan.

People often write business plans that may not be considered bankable due to various reasons. Banks may reject a business plan or business proposal for a loan due to various reasons. Understanding these common issues can help you avoid them and increase your chances of approval.

Normal issues that can lead to a bank rejecting a business plan or proposal

  1. Inadequate Financial Projections: Banks assess the financial viability of a business and its ability to generate sufficient cash flow to repay the loan. If your financial projections are unrealistic, lack supporting data, or show inconsistencies, the bank may consider your business plan unreliable and reject your loan application.
  2. Insufficient Collateral or Guarantees: Banks often require collateral or personal guarantees to secure a loan. If the value of the collateral is insufficient or if the personal guarantees provided are not strong enough, the bank may reject the loan application due to perceived higher risk.
  3. Poor Credit History: Banks review the credit history of the borrower, both personal and business. A low credit score, a history of late payments, or defaults on previous loans can lead to loan rejection. Maintain a good credit history by making payments on time and managing your debts responsibly.
  4. Lack of Business Experience or Expertise: Banks consider the experience and expertise of the management team crucial to the success of a business. If the management team lacks relevant industry experience or fails to demonstrate the necessary skills to manage the proposed venture, the bank may reject the loan application.
  5. Weak Business Model or Market Analysis: If the business plan fails to convince the bank of the viability of the business model or lacks a thorough market analysis, it may be seen as high risk. Banks want assurance that your business has a solid market demand, a competitive advantage, and a well-defined target audience.
  6. Insufficient Cash Flow or Profitability: Banks assess the cash flow and profitability of a business to ensure it can generate enough income to repay the loan. If your business plan demonstrates weak cash flow projections or a lack of profitability, the bank may consider it financially unstable and reject the loan application.
  7. Inadequate Documentation: Failing to provide the required supporting documents or submitting incomplete or inaccurate information can result in loan rejection. Banks rely on these documents to assess the credibility and feasibility of your business proposal, so ensure they are well-prepared and up-to-date.
  8. Regulatory or Legal Issues: Banks require businesses to comply with all applicable laws and regulations. If your business plan raises concerns about legal compliance or if there are any pending legal issues, the bank may reject the loan application to mitigate potential risks.
  9. Over-reliance on a Single Customer or Supplier: If your business heavily depends on one customer or supplier, it can be seen as a risk. Banks prefer diverse and stable customer bases and supply chains to ensure the sustainability of their business.
  10. Lack of Repayment Plan: If your business plan fails to outline a clear and feasible repayment plan for the loan, including repayment sources and timelines, the bank may reject the loan application. Banks need assurance that you have considered how the loan will be repaid.

It’s important to address these issues when preparing your business plan and loan proposal. Conduct thorough research, seek professional advice if needed, and ensure your business plan addresses these potential concerns to maximize your chances of loan approval.

To increase the chances of your business plan being considered bankable by banks, it is important to fulfill certain prerequisites and provide supporting documents that demonstrate the viability of your business.

Here is a list of prerequisites and supporting documents commonly required by banks when submitting a business plan for a loan

The prerequisites

  1. Clarity of Purpose: Clearly state the purpose of the loan and how it will be used to support your business’s growth, such as working capital, equipment purchase, expansion, or inventory management.
  2. Realistic Financial Projections: Develop realistic and well-supported financial projections that include projected income statements, cash flow statements, and balance sheets for at least three years. Use accurate assumptions based on thorough market research and industry analysis.
  3. Repayment Plan: Present a solid repayment plan, including the proposed loan term, interest rates, and the expected cash flow generated by the business to cover loan repayments.
  4. Strong Management Team: Highlight the qualifications and experience of your management team to instill confidence in the bank regarding their ability to successfully lead and manage the business.
  5. Collateral or Guarantees: Be prepared to provide collateral or personal guarantees, such as property, inventory, or other assets, to secure the loan. Banks often require some form of security to mitigate their lending risk.
  6. Credit History: Maintain a good personal and business credit history. Banks typically review credit scores and credit reports to assess the borrower’s creditworthiness.
  7. Legal and Regulatory Compliance: Ensure that your business complies with all applicable legal and regulatory requirements. This includes licenses, permits, registrations, and any necessary certifications.

The supporting documents for loan submission

  1. Business Plan: A comprehensive business plan that includes all the essential sections mentioned in the previous response. This document should be well-structured, clearly written, and professionally presented.
  2. Financial Statements: Provide the latest financial statements of your business, including income statements, balance sheets, and cash flow statements. These statements should be prepared by a qualified accountant.
  3. Personal and Business Tax Returns: Submit personal and business tax returns for the previous few years to demonstrate the financial health and stability of your business.
  4. Bank Statements: Provide recent bank statements for your business accounts to showcase cash flow patterns and financial stability.
  5. Legal Documents: Include copies of legal documents such as business licenses, permits, registrations, contracts, leases, or partnership agreements to establish the legitimacy and legality of your business.
  6. Resumes: Attach resumes or curricula vitae (CVs) of key members of your management team, highlighting their relevant experience, skills, and qualifications.
  7. Market Research and Analysis: Include market research data, competitor analysis, and industry reports to support your understanding of the market, its potential, and your competitive advantage.
  8. Contracts or Purchase Orders: If applicable, provide any signed contracts or purchase orders from customers or clients that demonstrate existing demand for your products or services.
  9. Insurance Policies: Include copies of insurance policies relevant to your business, such as general liability insurance, property insurance, or professional liability insurance.
  10. References: Provide references from clients, suppliers, or industry experts who can vouch for your business’s credibility and potential.

These specific requirements and supporting documents may vary depending on the bank and the nature of your business. It’s always recommended to consult with the bank or a financial advisor to ensure you meet their specific prerequisites and provide all the necessary supporting documents when submitting your business plan for a loan.

If an entrepreneur does not have sufficient collateral or the necessary documentation to support their loan application, there are still several actions they can take to increase their chances of obtaining a loan.

Strategies for entrepreneurs in such a situation

  1. Build a Strong Business Case: Focus on developing a compelling business plan that clearly outlines the viability and potential profitability of your venture. Highlight your unique selling points, market demand, competitive advantage, and growth projections. Demonstrating a well-thought-out and promising business model can help compensate for the lack of collateral.
  2. Seek Alternative Financing Options: Explore alternative financing options beyond traditional bank loans. Consider options such as crowdfunding, angel investors, venture capital, or peer-to-peer lending platforms. These alternative sources of funding may have different requirements and may be more flexible regarding collateral.
  3. Find a Co-Signer or Partner: If you lack collateral, you could consider bringing on a co-signer or business partner who has the necessary assets or creditworthiness to act as a guarantor for the loan. This individual would share responsibility for loan repayment and provide additional security for the bank.
  4. Build Relationships with Local Banks: Develop relationships with local community banks or credit unions that may have more flexibility in their lending criteria compared to larger institutions. Local banks often have a deeper understanding of the local market and may be more willing to work with entrepreneurs without extensive collateral.
  5. Opt for Government-backed Loan Programs: Investigate government-backed loan programs or Small Business Administration (SBA) loans or grants that offer support and assistance to entrepreneurs. These programs often have more lenient collateral requirements and provide guarantees to lenders, reducing their risk.
  6. Improve Personal and Business Credit: Work on improving your personal and business credit scores by paying bills and debts on time, reducing outstanding debts, and establishing a positive credit history. A strong credit profile can help compensate for the lack of collateral and increase your chances of loan approval.
  7. Provide Additional Documentation: Even if you don’t have traditional collateral, providing additional documentation that showcases the stability and potential of your business can be beneficial. This could include contracts or purchase orders from clients, letters of intent, supplier agreements, or evidence of strong customer demand.
  8. Demonstrate Personal Investment: Show your commitment and belief in your business by investing your funds into the venture. Banks appreciate entrepreneurs who have a stake in their own success and are willing to invest their resources.
  9. Seek Expert Assistance: Consider seeking guidance from a small business advisor, consultant, or mentor who can help you navigate the loan application process. They can provide valuable insights, review your business plan, and assist in identifying alternative funding options.

Please bear in mind that each situation is unique, and the availability of options may vary depending on your location, industry, and specific circumstances. It’s essential to carefully evaluate your options, research available resources, and consider seeking professional advice to determine the best course of action for your specific situation.


Writing a bankable business plan requires thorough research, strategic thinking, and a clear understanding of your business model. By following these key steps, you will be well-equipped to create a compelling business plan that increases your chances of securing the loan you need to turn your entrepreneurial vision into a reality.

A strong business plan helps you secure funding and serves as a roadmap for your business’s success.

So, writing a bankable business plan is an essential step for entrepreneurs who are looking to start or expand their ventures. A well-crafted business plan serves as a roadmap that outlines your goals, strategies, and financial projections, making it easier to secure funding and attract potential investors.

Throughout this process, it’s important to thoroughly research your market, identify your target audience, and clearly articulate your unique value proposition. By demonstrating a thorough understanding of your industry, competition, and customer needs, you increase the likelihood of developing a compelling business plan that resonates with stakeholders.

Furthermore, a bankable business plan should address potential risks and challenges while providing realistic and achievable financial projections. This demonstrates your ability to analyze and mitigate risks, which gives confidence to investors and lenders.

Remember, a bankable business plan is not a static document but an evolving blueprint that should be regularly reviewed and updated as your business progresses. Flexibility and adaptability are key in the ever-changing business landscape. By investing time and effort into crafting a comprehensive and persuasive business plan, entrepreneurs can position themselves for success, navigate obstacles, and maximize their chances of turning their ideas into thriving businesses.

Hence, start today and embark on the journey of writing a bankable business plan that will set the foundation for your entrepreneurial aspirations. With careful planning, diligent research, and a clear vision, you can increase your chances of building a successful and sustainable business.

Welcome to our brand-new UI website! 🌟 We’re thrilled to have you here, and we hope your experience exploring our sleek and intuitive interface is nothing short of delightful. Our redesigned UI is more than just a visual upgrade – it’s a reflection of our commitment to providing you with an enhanced and enjoyable online journey.

We’ve incorporated the latest design trends and technologies to make your interaction with our website seamless, responsive, and, most importantly, tailored to your needs. Thank you for being a part of our online community. Your presence makes our website come to life, and we look forward to serving you in the best possible way.

Happy exploring! 🚀✨

Seraphinite AcceleratorOptimized by Seraphinite Accelerator
Turns on site high speed to be attractive for people and search engines.