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The Importance of a Business Plan When Applying for an SBA Loan

Written by: Michael Bland Posted: 8/21/2017
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You see the potential in a property you want to buy. You know how to take it to the next level and generate a return that will reap benefits to you and your family for years to come. So why does your lender not get it?

Because lenders can do a lot of things, but they cannot read your mind.

That is where a business plan comes in. You will need a thorough plan, especially if you are obtaining an SBA loan. A well-written plan will reveal how you intend to run the self storage facility you want to buy, improve, grow and lure customers like a siren resting on a mountain of diamonds. Your business plan might even reveal a little of your brilliance.

Hyperbole aside, it also demonstrates your knowledge of the market, the competition and how you anticipate your facility will succeed. By doing so, it shows your expertise. Every one of those items is extremely important for a lender in determining whether to provide financing. In other words, a strong business plan will enable you to traverse the lending process quicker and easier. It is more than a resume. It is your roadmap you plan to follow for business success.

The SBA (and your lender) requires a business plan on an acquisition project, along with two years of projections with the first year broken down by month. The sooner you have this, the sooner you will achieve your goals.

If you need help formulating a business plan, do not sweat. Local SCORE offices can help you craft a business plan that might even lure a siren or two.

Good luck!

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