This depends on the type of new or existing business loan being obtained. While most small business lending companies in Canada will want to see how the small business will deploy the funds, a well-formulated business plan may not be a requirement. In the case that it is necessary though, it is important to answer the bank the following questions:
a) What the small business loan will be used for (additional funding “cushions”, expansion, growth, equipment/technology purchase inventory purchases, working capital, funds for supplier/employee payments, capital expenditures, cash flow purposes etc.)
b) Expected business and economic conditions over the next 2-5 years
c) How they will impact profitability and financial strength