Writing a Business Plan for Securing a Loan: A Step-by-Step Guide

Published: September 8, 2017 | Updated: September 23, 2020 | Posted by: Venus Zoleta | Loans



Banks that provide personal loans for businesses in the Philippines require prospective borrowers to submit documents that prove their credit worthiness. Applying for a business loan? A requirement you must pay attention to is the business plan, a proposal that covers all the nitty-gritty of starting your business. It’s your solid proof of your business’ high-profit potential and your ability to pay off your loan.

Many aspiring entrepreneurs who don’t have time to prepare a business plan just wing it for the sake of fulfilling the bank’s loan requirements. Don’t make that mistake. Writing a business plan does take time and effort. If you’re serious about improving your chance of getting approved for a loan, you have to make it as comprehensive and detailed as possible.

Here are six steps to guide you through creating your business plan for a personal loan in the Philippines.

Step 1: Define your business concept.

Every business starts with an idea, and yours has to be developed into a clear business concept. Doing so will keep you on track while drafting your business plan. A business concept should include these details:

  • Mission and vision – Why you are putting up this business?
  • Target market – Who will buy your products or services? What problems or pain points of your target customers you want to address?
  • Product – What will you offer as a solution to your target market’s problems?
  • Value proposition – What are your unique selling points? Why should people buy from you instead of the competitor?
  • Branding – What is the expertise or specialization of your business? How do you want to position it in your industry?

Step 2: Research your market and industry.


Once you’ve defined your business concept, you can start collecting data about your target market and the industry you’ll be in to find out if your idea is feasible. Never skip this step—you have to prove to the bank that everything in your business plan is based on facts.

Make sure your business plan research covers these areas:

  • Market research through surveys, personal interviews, and focus group discussions that gather insights from target customers, suppliers, and industry experts
  • Data about your competitors
  • Industry trends and growth potential based on published studies and research

Analyze your compiled data and see if your business concept needs fine-tuning to make it more viable.

Step 3: Create a business plan outline.

After you’ve gathered all the necessary data for your business plan, prepare an outline that will keep everything organized. In the Philippines, a great business plan template to use for personal loans is the format developed by the Department of Trade and Industry (DTI).

DTI’s business plan format has five sections:

  1. Executive Summary
  2. Marketing Plan
  3. Production Plan
  4. Organization and Management Plan
  5. Financial Plan

Read More: DTI Business Registration Guide for Entrepreneurs in the Philippines

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Step 4: Develop the main sections of your business plan.

  1. Executive Summary

Open your business plan with a brief overview of your business, its nature, and its competitive edge. Include your qualifications and competencies, as well as a short discussion of how the loan will help your business grow.

  1. Marketing Plan

Discuss your product or service offerings, market demographics, competitor analysis, and marketing strategies that you’ll use to achieve your sales targets. The loan provider needs to know how much you’ll need to market and distribute your products.

  1. Production Plan

Convince the bank that you have the operational capacity to meet your sales forecasts by explaining all aspects of your production process, including equipment, raw materials, labor, and overhead expenses.

  1. Organization and Management Plan

Banks that provide personal loans in the Philippines need assurance that you can manage your business well. In this section, present details on how you’ll run the business and back it up with your qualifications and experience as an entrepreneur.

  1. Financial Plan

Make this section as comprehensive as possible, as this will show the potential financial strength of your business. The bank will closely scrutinize your financial strategies and projections to determine if you can repay the loan.

Include these key details to give the bank a realistic view of how your business will perform:

  • Cash flow statement
  • Break-even analysis
  • Return on investment
  • Sales and profits forecasts in the next 3 years
  • Loan purpose (e.g., purchase of new assets and equipment, payment for operating expenses, working capital, etc.)
  • Loan repayment time frame and your plan if you’re unable to pay off the loan

Step 5: Add supporting information.

Boost your chance of getting approved for a loan by backing up your business plan with as many supplementary documents as possible. You can add an Appendix section with the following information:

  • Documents that support your financial plan such as contracts, copies of leases, etc.
  • Market research findings
  • Bank statements
  • Licenses
  • Permits
  • Receipts
  • Resumes of key employees

Step 6: Review and proofread.

Check your final draft thoroughly to ensure that all important details are included and the unnecessary ones are removed. Have a friend, a business partner, or a proofreader review your business plan to check for any typos. You have just one shot at a business loan—don’t ruin it with a proposal teeming with grammatical errors and misspellings. The bank officer might be distracted with the errors rather than focus on your business plan’s merits and substance.

Related Article: 6 Personal Loans with Low-Interest Rates in the Philippines

Final Thoughts

Personal loans for businesses in the Philippines require a well-written, concise, and complete business plan that covers all relevant information about your business. Take the time and effort to convince the bank that you’re worthy of a business loan through your business plan.

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