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