Orchardshore Advances, a small-business funding service in Cleburne, Texas, publishes two guides and a calculator for local owners, plus notes on business plans and loan paperwork.
Business Plan for Loan Approval: What a Partner Reads First
A partner opens a business plan looking for four things: what the money is for, how much it costs, how the payment will be covered, and what happens if sales come in lower. An operating business can answer those in two pages with its own numbers. Market overviews and long mission statements add pages without answering any of the four.
A Commercial Loan Documentation Checklist for Johnson County, TX Owners
- Business bank statements, three to six months.
- Business tax returns, one to three years depending on the request.
- Profit and loss plus balance sheet for the current year to date.
- Quotes, bids or purchase agreements for what the money buys.
- A one-page schedule of each loan, lease and advance with balance and payment.
- Entity documents from the Texas Secretary of State, and a sales tax permit if the business has one.
Writing a Business Plan for a Loan Application Without Padding
Start with the purpose and the amount. Add a short history of the business and its owners, the last two years' sales and the year to date, the expected effect of the purchase, and a monthly cash projection for the first year that includes the new payment. Close with the collateral and the owner's own money in the deal. The request steps explain when a partner asks for it.
By Orchardshore Advances ยท Updated