The “3 C’s” A Business Plan Writer Will Address in an SBA Business Plan

Every audience for which you will write a business plan is different.  A Business Plan Writer is an expert at knowing how to tailor each and every plan so it appropriately appeals to the intended audience.   According to a business plan writer and the Small Business Administration (SBA), there are three C’s your business plan should focus on when writing your SBA business plan: credit, cash flow, and collateral.

Credit

Your personal credit will matter most in terms of your SBA Business Plan.  Your business credit is icing on the cake.  SBA loans are approved for startups but, a business plan writer knows the chances of a successful loan application dramatically increase if the business has a proven track record.  Whether you are a new or existing business, your personal finances will be scrutinized.  This is because, in most cases, you, the individual, will be liable for repayment of the loan.

If you don’t have the best personal credit, that doesn’t mean you are doomed.   There are other options, such as collateral and cosigners, that can make you less of a risk to lenders.  You can also use the creditworthiness of the business to help make your case.   There are many people who take their business finances more seriously than their personal finances.  If this is the case, a Business Plan writer will highlight the points that make the strongest case.   You still need to present all information and be truthful but, how you present that information can make a huge difference.

Cash Flow

Like credit, your cash flow will be more revealing and helpful if the business has already been in operation and you can provide historic actuals as well as projections.  The point that will continue to be driven home in this article in terms of your SBA Business Plan is the fact that the main concern of the SBA and lender is whether or not you will be able to repay your loan.   The other two C’s matter tremendously but, cash flow demonstrates your ability to repay your loan in practice.

Presenting historic actuals will reveal whether you are keeping enough cash on hand to pay your bills and have a cushion.  Projections give some insight as to how efficiently you will be able to cover your financial obligations in the future.  Both are important in the quest to make lenders feel confident that you will be able to satisfy the terms of a potential loan.

Collateral

As already mentioned, you will most likely be personally responsible for the loan whether the business succeeds.   Having collateral to put up for the loan dramatically increases your chances of approval.  Lenders want you to have “skin in the game”.   This serves to not only further reduce the risk for lenders – which improves your chance of success – but, acts a strong personal motivator.

Your SBA business plan is the most prominent document potential lenders will consider.  Focusing on the above elements will ensure that you are emphasizing the most important components of the plan.   These are the areas that will be most heavily scrutinized and factor into whether your loan is approved.  A business plan writer is well versed in demonstrating the strengths while underplaying the weaknesses.   Whether you write your plan yourself or hire a Professional Business Plan Writers, highlighting and fully addressing these key areas will increase your shot at loan approval.