How to write a business plan for a loan.

3 minute readUpdated October 13, 2026By the NorthAxis Capital team

Do you need a business plan for a loan?

Not always. For a small loan to a steady business, a few clear sentences about the purpose may be enough.

You will likely need a plan if:

• Your business is new
• You want a large loan
• You are applying for a CSBFP loan
• You are buying a business, a building or big equipment

The 7 parts of a loan business plan

1. Summary. One page. What you do, how much you need, what it’s for, and how you’ll pay it back. Write this part last.
2. Your business. What you sell, where you are, and how long you’ve been open.
3. Your customers. Who buys from you, why they choose you, and who you compete with.
4. Your team. Who runs things, and their experience.
5. The loan. The exact amount and a list of what it pays for. Add quotes for big items.
6. Your numbers. Past results and a forecast. See below.
7. Risks and your plan B. What could go wrong, and what you would do.

The numbers lenders care about

Not sure what the payments will be? Use our loan calculator, then put that number in your forecast.

Tips for a plan lenders like

• Use plain words. Skip the buzzwords.
• Be realistic. Big, rosy numbers raise red flags.
• Match everything. Your plan, statements and application should tell the same story.
• Explain dips. Lost a contract or hit by tariffs? Say so, and say what changed.

Mistakes to avoid

• No clear amount, or no list of what the money is for
• A forecast without the loan payments
• Too long, with the key facts buried
• Numbers that don’t match your bank statements

Want help building your plan and loan file? Tell us about your business. You can also see the full document checklist.