Need a Business Loan? Five Things Lenders Want to See.
When you apply for a business loan, your business plan is often the first—and most important—document a lender will review. It’s more than a formality: it’s your chance to show how your business operates, how it plans to grow, and most critically, how you’ll repay the loan.
A strong business plan can help you stand out. Here are five things lenders look for:
Executive Summary
A clear, compelling overview of your business: what you do, who you serve, your mission and long-term goals.
Market Analysis
Demonstrate that you understand your target market, industry trends and competition. Use data to back it up.
Financials & Use of Funds
Provide realistic financial projections (revenue, expenses and cash flow). Clearly demonstrate how the loan will be used and how it supports your business’s growth and repayment ability.
Business Model
Explain how your business makes money—your pricing, margins and what gives you a competitive edge.
Management Team
Highlight the experience and qualifications of you and your leadership team. Lenders want to be confident that you can execute your plan.
Bottom line:
A well-developed business plan shows that you’ve thought through the key elements of running and growing your business. It’s a roadmap not just for you—but for your lender to believe in your vision. Pair it with solid financials and you’ll dramatically improve your chances of securing funding.
Kevin Sheffield serves as director of business lending at Arlington Community Federal Credit Union and vice president of the Columbia Pike Partnership. With over a decade of banking experience, he combines technical knowledge with a commitment to helping local businesses and nonprofits thrive through tailored financial solutions.
Awards/Honors:
Holds Credit Risk Certification (CRC) from the Risk Management Association, a distinguished credential recognizing expertise in commercial credit
Kevin’s leadership and community engagement have been recognized through his service on boards and speaking engagements. He’s taught webinars on writing business plans, creating financial projections and understanding how lenders evaluate financing requests.