The majority of lenders will request a business plan from the founders looking to avail of a startup business loan. This enables the lender to do a deep dive into the vision of the company and how it will turn into a profitable entity within a stipulated period of time.
From the borrower’s perspective, the business plan should be detailed, stating clear objectives and targets and what the mechanism is to achieve them. The plan should also highlight the schedule of activities and how the business loan funds are going to be used.