loan application business plan

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Write a Successful Business Plan for a Loan

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Table of Contents

What does a loan business plan include?

What lenders look for in a business plan, business plan for loan examples, resources for writing a business plan.

A comprehensive and well-written business plan can be used to persuade lenders that your business is worth investing in and hopefully, improve your chances of getting approved for a small-business loan . Many lenders will ask that you include a business plan along with other documents as part of your loan application.

When writing a business plan for a loan, you’ll want to highlight your abilities, justify your need for capital and prove your ability to repay the debt. 

Here’s everything you need to know to get started.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

A successful business plan for a loan describes your financial goals and how you’ll achieve them. Although business plan components can vary from company to company, there are a few sections that are typically included in most plans.

These sections will help provide lenders with an overview of your business and explain why they should approve you for a loan.  

Executive summary

The executive summary is used to spark interest in your business. It may include high-level information about you, your products and services, your management team, employees, business location and financial details. Your mission statement can be added here as well.

To help build a lender’s confidence in your business, you can also include a concise overview of your growth plans in this section.

Company overview

The company overview is an area to describe the strengths of your business. If you didn’t explain what problems your business will solve in the executive summary, do it here. 

Highlight any experts on your team and what gives you a competitive advantage. You can also include specific details about your business such as when it was founded, your business entity type and history.

Products and services

Use this section to demonstrate the need for what you’re offering. Describe your products and services and explain how customers will benefit from having them. 

Detail any equipment or materials that you need to provide your goods and services — this may be particularly helpful if you’re looking for equipment or inventory financing . You’ll also want to disclose any patents or copyrights in this section.

Market analysis

Here you can demonstrate that you’ve done your homework and showcase your understanding of your industry, current outlook, trends, target market and competitors.

You can add details about your target market that include where you’ll find customers, ways you plan to market to them and how your products and services will be delivered to them.

» MORE: How to write a market analysis for a business plan

Marketing and sales plan

Your marketing and sales plan provides details on how you intend to attract your customers and build a client base. You can also explain the steps involved in the sale and delivery of your product or service.

At a high level, this section should identify your sales goals and how you plan to achieve them — showing a lender how you’re going to make money to repay potential debt.

Operational plan

The operational plan section covers the physical requirements of operating your business on a day-to-day basis. Depending on your type of business, this may include location, facility requirements, equipment, vehicles, inventory needs and supplies. Production goals, timelines, quality control and customer service details may also be included.

Management team

This section illustrates how your business will be organized. You can list the management team, owners, board of directors and consultants with details about their experience and the role they will play at your company. This is also a good place to include an organizational chart .

From this section, a lender should understand why you and your team are qualified to run a business and why they should feel confident lending you money — even if you’re a startup.

Funding request

In this section, you’ll explain the amount of money you’re requesting from the lender and why you need it. You’ll describe how the funds will be used and how you intend to repay the loan.

You may also discuss any funding requirements you anticipate over the next five years and your strategic financial plans for the future.

» Need help writing? Learn about the best business plan software .

Financial statements

When you’re writing a business plan for a loan, this is one of the most important sections. The goal is to use your financial statements to prove to a lender that your business is stable and will be able to repay any potential debt. 

In this section, you’ll want to include three to five years of income statements, cash flow statements and balance sheets. It can also be helpful to include an expense analysis, break-even analysis, capital expenditure budgets, projected income statements and projected cash flow statements. If you have collateral that you could put up to secure a loan, you should list it in this section as well.

If you’re a startup that doesn’t have much historical data to provide, you’ll want to include estimated costs, revenue and any other future projections you may have. Graphs and charts can be useful visual aids here.

In general, the more data you can use to show a lender your financial security, the better.

Finally, if necessary, supporting information and documents can be added in an appendix section. This may include credit histories, resumes, letters of reference, product pictures, licenses, permits, contracts and other legal documents.

Lenders will typically evaluate your loan application based on the five C’s — or characteristics — of credit : character, capacity, capital, conditions and collateral. Although your business plan won't contain everything a lender needs to complete its assessment, the document can highlight your strengths in each of these areas.

A lender will assess your character by reviewing your education, business experience and credit history. This assessment may also be extended to board members and your management team. Highlights of your strengths can be worked into the following sections of your business plan:

Executive summary.

Company overview.

Management team.

Capacity centers on your ability to repay the loan. Lenders will be looking at the revenue you plan to generate, your expenses, cash flow and your loan payment plan. This information can be included in the following sections:

Funding request.

Financial statements.

Capital is the amount of money you have invested in your business. Lenders can use it to judge your financial commitment to the business. You can use any of the following sections to highlight your financial commitment:

Operational plan.

Conditions refers to the purpose and market for your products and services. Lenders will be looking for information such as product demand, competition and industry trends. Information for this can be included in the following sections:

Market analysis.

Products and services.

Marketing and sales plan.

Collateral is an asset pledged to a lender to guarantee the repayment of a loan. This can be equipment, inventory, vehicles or something else of value. Use the following sections to include information on assets:

» MORE: How to get a business loan

Writing a business plan for a loan application can be intimidating, especially when you’re just getting started. It may be helpful to use a business plan template or refer to an existing sample as you’re going through the draft process.

Here are a few examples that you may find useful:

Business Plan Outline — Colorado Small Business Development Center

Business Plan Template — Iowa Small Business Development Center

Writing a Business Plan — Maine Small Business Development Center

Business Plan Workbook — Capital One

Looking for a business loan?

See our overall favorites, or narrow it down by category to find the best options for you.

on NerdWallet's secure site

U.S. Small Business Administration. The SBA offers a free self-paced course on writing a business plan. The course includes several videos, objectives for you to accomplish, as well as worksheets you can complete.

SCORE. SCORE, a nonprofit organization and resource partner of the SBA, offers free assistance that includes a step-by-step downloadable template to help startups create a business plan, and mentors who can review and refine your plan virtually or in person.

Small Business Development Centers. Similarly, your local SBDC can provide assistance with business planning and finding access to capital. These organizations also have virtual and in-person training courses, as well as opportunities to consult with business experts.

Business plan software. Although many business plan software platforms require a subscription, these tools can be useful if you want a templated approach that can break the process down for you step-by-step. Many of these services include a range of examples and templates, instruction videos and guides, and financial dashboards, among other features. You may also be able to use a free trial before committing to one of these software options.

A loan business plan outlines your business’s objectives, products or services, funding needs and finances. The goal of this document is to convince lenders that they should approve you for a business loan.

Not all lenders will require a business plan, but you’ll likely need one for bank and SBA loans. Even if it isn’t required, however, a lean business plan can be used to bolster your loan application.

Lenders ask for a business plan because they want to know that your business is and will continue to be financially stable. They want to know how you make money, spend money and plan to achieve your financial goals. All of this information allows them to assess whether you’ll be able to repay a loan and decide if they should approve your application.

On a similar note...

• Search Search Please fill out this field.

Why Do I Need a Business Plan?

Sections of a business plan, the bottom line.

• Small Business

How to Write a Business Plan for a Loan

How to secure business financing

Matt Webber is an experienced personal finance writer, researcher, and editor. He has published widely on personal finance, marketing, and the impact of technology on contemporary arts and culture.

A business plan is a document that explains what a company’s objectives are and how it will achieve them. It contains a road map for the company from a marketing, financial, and operational standpoint. Some business plans are more detailed than others, but they are used by all types of businesses, from large, established companies to small startups.

If you are applying for a business loan , your lender may want to see your business plan. Your plan can prove that you understand your market and your business model and that you are realistic about your goals. Even if you don’t need a business plan to apply for a loan, writing one can improve your chances of securing finance.

Key Takeaways

• Many lenders will require you to write a business plan to support your loan application.
• Though every business plan is different, there are a number of sections that appear in every business plan.
• A good business plan will define your company’s strategic priorities for the coming years and explain how you will try to achieve growth.
• Lenders will assess your plan against the “five Cs”: character, capacity, capital, conditions, and collateral.

There are many reasons why all businesses should have a business plan . A business plan can improve the way that your company operates, but a well-written plan is also invaluable for attracting investment.

On an operational level, a well-written business plan has several advantages. A good plan will explain how a company is going to develop over time and will lay out the risks and contingencies that it may encounter along the way.

A business plan can act as a valuable strategic guide, reminding executives of their long-term goals amid the chaos of day-to-day business. It also allows businesses to measure their own success—without a plan, it can be difficult to determine whether a business is moving in the right direction.

A business plan is also valuable when it comes to dealing with external organizations. Indeed, banks and venture capital firms often require a viable business plan before considering whether they’ll provide capital to new businesses.

Even if a business is well-established, lenders may want to see a solid business plan before providing financing. Lenders want to reduce their risk, so they want to see that a business has a serious and realistic plan in place to generate income and repay the loan.

Every business is different, and so is every business plan. Nevertheless, most business plans contain a number of generic sections. Common sections are: executive summary, company overview, products and services, market analysis, marketing and sales plan, operational plan, and management team. If you are applying for a loan, you should also include a funding request and financial statements.

Let’s look at each section in more detail.

Executive Summary

The executive summary is a summary of the information in the rest of your business plan, but it’s also where you can create interest in your business.

You should include basic information about your business, including what you do, where you are based, your products, and how long you’ve been in business. You can also mention what inspired you to start your business, your key successes so far, and your growth plans.

Company Overview

In this section, focus on the core strengths of your business, the problem you want to solve, and how you plan to address it.

Here, you should also mention any key advantages that your business has over your competitors, whether this is operating in a new market or a unique approach to an existing one. You should also include key statistics in this section, such as your annual turnover and number of employees.

Products and Services

In this section, provide some details of what you sell. A lender doesn’t need to know all the technical details of your products but will want to see that they are desirable.

You can also include information on how you make your products, or how you provide your services. This information will be useful to a lender if you are looking for financing to grow your business.

Market Analysis

A market analysis is a core section of your business plan. Here, you need to demonstrate that you understand the market you are operating in, and how you are different from your competitors. If you can find statistics on your market, and particularly on how it is projected to grow over the next few years, put them in this section.

Marketing and Sales Plan

Your marketing and sales plan gives details on what kind of new customers you are looking to attract, and how you are going to connect with them. This section should contain your sales goals and link these to marketing or advertising that you are planning.

If you are looking to expand into a new market, or to reach customers that you haven’t before, you should explain the risks and opportunities of doing so.

Operational Plan

This section explains the basic requirements of running your business on a day-to-day basis. Your exact requirements will vary depending on the type of business you run, but be as specific as possible.

If you need to rent office space, for example, you should include the cost in your operational plan. You should also include the cost of staff, equipment, and any raw materials required to run your business.

Management Team

The management team section is one of the most important sections in your business plan if you are applying for a loan. Your lender will want reassurance that you have a skilled, experienced, competent, and reliable senior management team in place.

Even if you have a small team, you should explain what makes each person qualified for their position. If you have a large team, you should include an organizational chart to explain how your team is structured.

Funding Request

If you are applying for a loan, you should add a funding request. This is where you explain how much money you are looking to borrow, and explain in detail how you are going to use it.

The most important part of the funding-request section is to explain how the loan you are asking for would improve the profitability of your business, and therefore allow you to repay your loan.

Financial Statements

Most lenders will also ask you to provide evidence of your business finances as part of your application. Graphs and charts are often a useful addition to this section, because they allow your lender to understand your finances at a glance.

The overall goal of providing financial statements is to show that your business is profitable and stable. Include three to five years of income statements, cash flow statements, and balance sheets. It can also be useful to provide further analysis, as well as projections of how your business will grow in the coming years.

What Do Lenders Look for in a Business Plan?

Lenders want to see that your business is stable, that you understand the market you are operating in, and that you have realistic plans for growth.

Your lender will base their decision on what are known as the “five Cs.” These are:

• Character : You can stress your good character in your executive summary, company overview, and your management team section.
• Capacity : This is, essentially, your ability to repay the loan. Your lender will look at your growth plans, your funding request, and your financial statements in order to assess this.
• Capital : This is the amount of money you already have in your business. The larger and more established your business is, the more likely you are to be approved for finance, so highlight your capital throughout your business plan.
• Conditions : Conditions refer to market conditions. In your market analysis, you should be able to prove that your business is well-positioned in relation to your target market and competitors.
• Collateral : Depending on your loan, you may be asked to provide collateral , so you should provide information on the assets you own in your operational plan.

How Long Does It Take to Write a Business Plan?

The length of time it takes to write a business plan depends on your business, but you should take your time to ensure it is thorough and correct. A business plan has advantages beyond applying for a loan, providing a strategic focus for your business.

What Should You Avoid When Writing a Business Plan?

The most common mistake that business owners make when writing a business plan is to be unrealistic about their growth potential. Your lender is likely to spot overly optimistic growth projections, so try to keep it reasonable.

Should I Hire Someone to Write a Business Plan for My Business?

You can hire someone to write a business plan for your business, but it can often be better to write it yourself. You are likely to understand your business better than an external consultant.

Writing a business plan can benefit your business, whether you are applying for a loan or not. A good business plan can help you develop strategic priorities and stick to them. It describes how you are going to grow your business, which can be valuable to lenders, who will want to see that you are able to repay a loan that you are applying for.

U.S. Small Business Administration. “ Write Your Business Plan .”

U.S. Small Business Administration. “ Market Research and Competitive Analysis .”

U.S. Small Business Administration. “ Fund Your Business .”

Navy Federal Credit Union. “ The 5 Cs of Credit .”

• How to Start a Business: A Comprehensive Guide and Essential Steps 1 of 25
• How to Do Market Research, Types, and Example 2 of 25
• Marketing Strategy: What It Is, How It Works, and How to Create One 3 of 25
• Marketing in Business: Strategies and Types Explained 4 of 25
• What Is a Marketing Plan? Types and How to Write One 5 of 25
• Business Development: Definition, Strategies, Steps & Skills 6 of 25
• Business Plan: What It Is, What's Included, and How to Write One 7 of 25
• Small Business Development Center (SBDC): Meaning, Types, Impact 8 of 25
• How to Write a Business Plan for a Loan 9 of 25
• Business Startup Costs: It’s in the Details 10 of 25
• Startup Capital Definition, Types, and Risks 11 of 25
• Bootstrapping Definition, Strategies, and Pros/Cons 12 of 25
• Crowdfunding: What It Is, How It Works, and Popular Websites 13 of 25
• Starting a Business with No Money: How to Begin 14 of 25
• A Comprehensive Guide to Establishing Business Credit 15 of 25
• Equity Financing: What It Is, How It Works, Pros and Cons 16 of 25
• Best Startup Business Loans for May 2024 17 of 25
• Sole Proprietorship: What It Is, Pros and Cons, and Differences From an LLC 18 of 25
• Partnership: Definition, How It Works, Taxation, and Types 19 of 25
• What Is an LLC? Limited Liability Company Structure and Benefits Defined 20 of 25
• Corporation: What It Is and How To Form One 21 of 25
• Starting a Small Business: Your Complete How-to Guide 22 of 25
• Starting an Online Business: A Step-by-Step Guide 23 of 25
• How to Start Your Own Bookkeeping Business: Essential Tips 24 of 25
• How to Start a Successful Dropshipping Business: A Comprehensive Guide 25 of 25

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

• 400+ Sample Business Plans
• WHY UPMETRICS?

Customer Success Stories

Business Plan Course

Strategic Planning Templates

E-books, Guides & More

Entrepreneurs & Small Business

Accelerators & Incubators

Business Consultants & Advisors

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai Pitch Deck Generator

Strategic Planning

See How Upmetrics Works  →

• Sample Plans

Small Business Tools

How to Write a Professional Business Plan for a Loan

• March 27, 2024

11 Min Read

So, are you thinking of getting a loan or funding to start an exciting business journey?

That’s great! But before you go any further, it’s very important to have a solid business plan in place.

Well, we understand that creating a successful plan for a loan can be a daunting task. That’s why we’re here to help you!

This investment-ready business plan template for loans will help you include all the essential elements in your plan, from summarizing your business concept to projecting the financial data. It not only impresses business loan lenders but also sets the stage for success.

Ready to get started? Let’s first understand how business plans will help you with loan proposals.

How business plans help in loan applications?

A business plan is a professional document that serves as a written loan proposal if you want to secure a loan for capital investment. It details every aspect of your business, including its concept, goals, market opportunity, and financial data.

Whether you’re a new entrepreneur or a small business owner, you’ll need a well-prepared business plan. It helps you persuade potential investors or lenders of its viability and potential for success.

Here are a few primary reasons why business plans are necessary in loan applications:

It helps you showcase your vision

A well-written business plan communicates your business vision effectively and allows you to demonstrate your clarity of purpose and strategic direction. It offers lenders a compelling narrative of what your business is aimed for and how it will achieve its goals.

It helps you prove your financial feasibility

Well, lenders need assurance that they’re making a wise investment. A detailed business plan presents them with realistic financial projections, along with how your business will earn money and repay the loan. This infuses confidence in lenders and convinces them that your business is a safe bet.

It helps you mitigate potential risks

Once you start your business, it naturally involves fair enough risks. However, a good business plan clarifies that you’re aware of those challenges and have backup plans or strategies to mitigate them. This shows lenders that you’ve considered different situations and keep contingency plans in place.

It helps you demonstrate your preparedness

A business plan shows lenders that you’ve carefully outlined every aspect of your business—from conducting market analysis to predicting finances. It assures that you’re serious about your business and well-prepared to manage the ups and downs of starting a business.

In short, having a solid business plan can be the cornerstone of a successful loan application that explains your business idea and how you plan to utilize the loan money to get started.

Now that you know how business plans help in a loan application, it’s time to check out and understand the key elements of a business plan for a loan template.

Say goodbye to boring templates

Build your business plan faster and easier with AI assistant

Plans starting from $7/month

Key components of a successful business plan for a loan

1. executive summary.

An executive summary is the first section of the plan, providing a concise overview of the entire business plan.

Generally, it is written in the last, as it summarizes the most important components you mentioned in your plan.

Since the potential investors or lenders would read this section first, make sure that you keep it simple, crisp, and compelling to build their confidence in your business. Also, it should not be more than 1 or 2 pages.

You may write your executive summary with a precise explanation of your business concept, the type of business you operate, and its status.

Here are a few primary elements you must add to your summary:

• Your company’s mission statement
• The product or service you intend to offer
• Market Opportunity
• Management team’s background and experience
• Growth plans or long-term objectives
• Financial projections and funding needs

2. Company Overview

As you’ll give a brief introduction in the executive summary, this chapter will expand on it, providing an in-depth understanding of your business.

Company description includes all the business-related facts, such as the startup concept, vision-mission statements, company location, etc. Also, it explains the problems or challenges you aim to solve.

In addition to that, consider answering a few questions that would help lenders to grasp the significance of your business:

• What is the legal structure of your business?
• Who is the business owner?
• Do you have any business partners?
• Why did you start this business, and when it was founded?
• What are your business accomplishments to date?
• Who will get benefits from your company’s product or service?

Note that the company overview section can be regarded as your extended elevator pitch.

So, it’s a good opportunity to present your business’s specific details and structural aspects that the financing partner needs to know.

3. Market Analysis

The market analysis section provides readers with a deep understanding of the specific industry or market in which you plan to serve.

This seems unnecessary but serves different purposes. Those who are looking to fund a franchise business should do some serious work for this section, as lenders will review it very closely.

To carefully draft this section, you should conduct thorough market research and industry analysis to define your target customers, industry trends, market demand, and competitors.

This will demonstrate that you understand the market dynamics and validate the demand for your products or services.

Here are a few elements you should include in your market analysis section:

• Ideal target market
• Market size and growth potential
• Customer segments
• Competitive analysis
• Emerging trends
• Applicable government regulations

4. Product or Service Offerings

In this section, you may provide a detailed description of your products and service offerings, along with their features, benefits, and pricing structure.

It helps you highlight what your business offers to its ideal customers, how your offerings will satisfy their needs and explains the value proposition of your products or services.

You may consider including these points in the product or service section:

• A brief description of your product & service
• Pricing details
• Intellectual property, copyright, and patent filings
• Quality measures
• Any additional offerings

5. Sales and Marketing Strategies

Your marketing and sales plan elucidates how you intend to market your products or services in greater detail. It helps you outline the marketing and sales strategies you’ll use to attract and retain potential customers.

The primary goal is to give a flexible and practical marketing and sales strategy that persuades the lenders you know how to advertise or develop a public relations campaign to reach the company’s revenue goals.

For a well-crafted marketing plan, you might consider adding the following details in your plan:

• Your target audience and brand positioning
• Detailed marketing strategy
• Sales and marketing goals and KPIs
• Sales and marketing budgets
• Customer retention plan

While reviewing your loan application, lenders would like to know how you plan to make money and how you overcome marketing and sales challenges, so ensure that this strategy is always relevant.

6. Operations Plan

The operations plan section provides a clear picture of your company’s day-to-day operations and activities. It is a detailed-oriented section that outlines how you’ll manage to run your business smoothly.

Also, operational excellence is necessary to achieve your goals, satisfy client commitments, and maximize results. So, try to mention your operational intricacies and showcase efficient systems and processes.

Here are a list of details you must include in your operations plan:

• Staffing & training
• Operational processes
• Inventory needs and supplies
• facilities & technology
• Regulatory compliance

By offering insights into these operational aspects, this section helps you instill confidence in lenders about your ability to effectively handle and grow your company.

7. Management Team

Your management team section introduces the key individuals who are responsible for driving your business ahead.

It helps lenders easily understand your team’s roles & responsibilities, educational qualifications, industry experience, and how you plan to compensate your leadership team.

Even this will assure lenders that your team is capable enough to navigate challenges, make informed decisions, and reach strategic objectives. Also, they feel confident giving you a loan—even if it’s your startup.

So, you may consider including the below information:

• Company owner profile
• Resume-styled summary of key executives
• Organizational chart
• Compensation plan
• Details of advisory board members(if any)

8. Financial Plan

A well-written and comprehensive financial plan is one of the most crucial sections of your plan, as it helps you prove to lenders your business’s financial health, growth potential, and ability to repay the business loan.

So, your financial analysis must include the projected financial statements for three years or more. The following are the key financial projections that you should add:

• Income statements
• Cash flow statements
• Capital expenditure budgets
• Balance sheet
• Break-even analysis
• Funding requirements

As well as you should also list hard or soft collateral if you possess it so that you can put it up to get a loan. Even lenders may request to add more granular data(such as cost of sales or cost per product/service).

Note that if you’re a startup and don’t carry enough data to highlight, consider including estimated costs, revenue streams, and other strategic future projections you may have.

9. Appendix

The appendix is the last section of a professional business plan that typically provides supplementary information and other supporting documents the lender may need for better understanding.

You may include the following details in an appendix:

• Business licenses and permits
• Contractual agreements or other legal documents
• Letters of reference
• Credit histories and tax returns
• Key managers’ resumes and certificates
• Product photos

By adding these details, you offer more detailed explanations or validation for your business plan, strengthening your discussions and claims.

What factors do lenders look for in a business plan

When you submit a business plan to secure funding, lenders will analyze it to evaluate the viability and creditworthiness of your loan application. Here are several key factors they look for:

Character of your management team

Lenders will assess a business’ character that includes subjective or intangible qualities like whether its owners or key executives are perceived as honest, competent, or committed. Also, they consider educational background, industry experience, skills, leadership capabilities, and credit histories. This can be critical for evaluating prospects as most lenders don’t wish to lend to whom they don’t feel trustworthy.

Your capability to repay loans

Loan officers also spend a lot of time analyzing the borrower’s ability to repay the loan. They will thoroughly examine the financial statements such as projected revenue, expenses, cash flows, growth plans, and loan payments. Further, lenders analyze the financial history to see how much revenue you have generated or how much profit you have made in the past.

The capital amount you’re seeking

While reviewing loan applications, lenders will go through your financial information that highlights how much funding you’re seeking, how much cash you carry on hand, and how much debt you have. Also, they assess your personal financial investments as a sign of commitment and seriousness. So, make sure your business plan clearly outlines your investment amount and funding needs.

Collateral or personal guarantees

In some cases, lenders may request collateral or personal guarantees to secure the loan. Thus, you should document any assets or valuable items you can offer as collateral or additional security. Even lenders may still approve your loan without collateral if you have a good credit history and a reliable business plan.

By understanding these key considerations, you can prepare a business plan that resonates with the lender’s interests and concerns. Now, let’s move to a few business plan examples for a loan.

Business plan examples for a loan

When you’re just venturing into your entrepreneurship journey, crafting a comprehensive business plan for a loan application can be overwhelming.

So, try to consider some sample business plan templates or resources to get started on the first draft of your plan. Here are a few business plan examples that you may find helpful:

• Sample business plan outline
• Small business plan template
• Comprehensive business plan writing
• Business Plan Workbook for Loan Applications

Start preparing your business plan

Finally, you understand the importance and key elements of drafting a business plan for securing a loan or funding. But it requires some extra effort to find success down the road.

If you’re still confused about where to start, Upmetrics could be a great choice. It’s a modern business plan app that helps entrepreneurs or small business owners create an actionable plan quickly.

With Upmetrics, you’ll get easy-to-follow guides, a library of business plan templates , AI support, a financial forecasting tool, and other valuable resources to streamline your entire business planning approach.

So, don’t wait and start preparing your business plan for a loan!

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

Frequently Asked Questions

Do i need a business plan to get a loan.

Of course, most lenders or financial institutes require a solid business plan, even if you are a well-established business. A well-crafted business plan helps you highlight every essential information about your business and demonstrate to lenders that you have a realistic plan in place to generate income and repay the loan.

Can I write a business plan myself?

Definitely, you can write a business plan by yourself. Also, you can get help from various resources available, including business plan templates and guides, to create a comprehensive plan. But, if you’re unsure or need assistance, you may consider having a business plan software or hiring a professional writer.

How long should my business plan be?

The length of your business plan should be concise and focused, typically depending on its purpose. A one-page business plan is a single-page document, a lean or mini business plan comprises 1–10 pages, while a comprehensive business plan can range from 15 to 35 pages and beyond.

What's the most important element of a loan-seeking business plan?

The financial plan is the most crucial element of a loan-seeking business plan, as lenders want to check realistic and well-structured financial forecasts that present your ability to repay the loan. Also, this section can make or break a lender’s confidence and willingness to raise capital.

What format should I use?

It’s essential to select a format that can effectively convey your business idea, strategy, and financial projections to the lenders. Following are a few common options to consider:

• Traditional text-based document
• PowerPoint or Keynote presentation deck
• Executive summary or a pitch deck

So, whatever format you choose, it should align with your preferences, the lender requirements, and the complexity of your business.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Reach Your Goals with Accurate Planning

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

What stage is your business at?

Tell us and we’ll match you with a special LivePlan discount:

New Business Idea

Startup Phase

Established Business

Enter your email address to unlock it.

Please enter a valid email address

We care about your privacy. See our Privacy Policy .

How To Write A Business Plan for A Bank Loan (3 Key Steps)

Wondering how to create a business plan that will wow your banker.

You're not alone.

Most entrepreneurs see writing a business plan as a gargantuan task – especially if they've never written one before.

Where do you start?

How do you calculate the financials?

How can you be sure you're not making a mistake?

And if you need a business plan for a bank loan, getting this document right is absolutely essential.

So here's what we recommend: simplify the planning process by breaking the work up into manageable, bite–sized steps. That way, you can focus on one section at a time to make sure it's accurate.

Here's a quick overview of the step–by–step process we guide entrepreneurs through when they sign up for LivePlan.

Step 1: Outline The Opportunity

This is the core of your business plan. It should give loan officers a clear understanding of:

• What problem you're solving
• How your product or service fits into the current market
• What sets your business apart from the competition

There are three key parts to this step:

The Problem & Solution

Detail exactly what problem you are solving for your customers. How do their lives improve after you solve that “pain point” for them?

We recommend actually going out and chatting with your target audience first. That way, you can validate that you're solving a real problem for your potential customers.

Be sure to describe your solution in vivid detail. For example, if the problem is that parking downtown is expensive and hard to find, your solution might be a bike rental service with designated pickup and dropoff locations.

Target Market

Who exactly are you selling to? And roughly how many of them are there?

This is crucial information for determining whether or not your business will succeed long–term. Never assume that your target market is “everyone.”

For example, it would be easy for a barber shop to target everyone who needs a haircut. But most likely, it will need to focus on a specific market segment to reach its full business potential. This might include catering to children and families, seniors or business professionals.

Competition

Who are your direct competitors? These are companies that provide similar solutions that aim to solve your customers' pain points.

Then outline what your competitive advantages are. Why should your target market choose you over the other products or services available?

Think you don't have any competition? Think again. Your customers are likely turning to an indirect competitor that is solving their problem with a different type of solution.

For example: A taco stand might compete directly with another taco stand, but indirectly with a nearby hot dog vendor.

Boost your chances of securing a loan

See how LivePlan can help you write a fundable business plan

Step 2: Show how you'll execute

This is where the action happens! Here you'll get into the details of how you'll take advantage of the opportunity you outlined in the previous section. This part demonstrates to banks that you have a strong plan to achieve success.

The three main components of this step include:

Marketing & Sales Plan

There can be a lot of moving parts to this one, depending on your business model.

But most importantly, you'll need to fully explain how you plan to reach your target market and convert those people into customers. A few example of what should be included:

• Positioning strategy. What makes your business both unique and highly desirable to your target market?
• Marketing activities. Will you advertise with billboards, online ads or something else entirely?
• Pricing. What you charge must reflect consumer demand. There are a few models to choose from, including ‘cost–plus pricing’ and ‘value pricing.’

This is the nuts and bolts of your business. It's especially important for brick–and–mortar companies that operate a storefront or have a warehouse.

You may want to explain why your location is important or detail how much space you have available. Plan to work at home? You can also cover your office space and any plans to move outside your house.

Any specialized software or equipment and tools should also be covered here.

Milestones & Metrics

Lenders and investors want to be confident that you know how to turn your business plans into financial success. That's where your milestones come in.

These are planned goals that help you progress your company. For example, if you're launching a new product your milestones may include completing prototypes and figuring out manufacturing.

Metrics are how you will gauge the success of your business. Do you want to generate a certain level of sales? Or keep costs at a certain level? Figuring out which metrics are most important and then tracking them is essential for growth.

Step 3: Detail your financial plan

This is the most crucial – and intimidating – part of any business plan for a bank loan. Your prospective lender will look especially close at this section to determine how likely your business is to succeed.

But the financial section doesn't have to be overwhelming, especially if you break the work into smaller pieces. Here are 3 items that your plan must have:

Simply put, this is your projections for your business finances. It gives you (and the bank) an idea of how much profit your company stands to make. Just a few items you'll need to include:

• Revenue. List all your products, services and any other ways your business will generate income.
• Direct costs. Or in other words, what are the costs to make what you sell?
• Personnel. Salaries and expenses related to what you pay yourself, employees and any contactors.
• Expenses. Things like rent, utilities, marketing costs and any other regular expenses.

Exactly how will you use any investments, loans or other financing to grow your business? This might include paying for capital expenses like equipment or hiring personnel.

Also detail where all your financing is coming from. Lines of credit, loans or personal savings should be listed here.

Bankers will be giving this section a lot of attention. Here's what you'll need:

• Profit & Loss. This statement pulls in numbers from your sales forecast and other elements to show whether you're making or losing money.
• Projected Balance Sheet. This is likely the first thing a loan officer will look at: it covers your liability, capital and assets. It provides an overview of how financially sound your business is.
• Projected Cash Flow. Essentially, this statement keeps track of how much money you have in the bank at any given point. Loan officers are likely to expect realistic monthly cash flow for the next 12 months.

Don't forget the Executive Summary

The Executive Summary is the first section of your business plan, but we recommend you tackle it last.

It's basically an introduction to your company, summarizing the main points of your plan. Keep it to just one or two pages and be as clear and concise as possible.

Think of it as a quick read designed to get the lender excited about your business.

If you need help writing your plan

Not everyone feels confident writing a business plan themselves, especially if it's needed to secure a bank loan.

And although you don't need an MBA to write one, getting your business plan right often does require quite a bit of work. So if you need help writing your plan, here are two options to consider:

• Hire a professional business plan writer to do it for you. This is typically the most expensive route, but worth it if you're pursuing $100,000 or more in capital.
• Sign up for LivePlan. It's business planning software that walks you through a step–by–step process for writing any type of plan. It's an affordable option that also gives you an easy way to track your actuals against your business plan, so you can get the insights you need to grow faster.

LivePlan makes it easy to write a winning business plan

No risk – includes our 35-day money back guarantee.

4 Steps to Prepare the Best Business Loan Application

Meredith Wood

6 min. read

Updated October 27, 2023

The act of applying for a small business loan can be intimidating. You are excited about the prospect of obtaining a loan to grow your business, but at the same time, you are worried about making a mistake that could have a negative impact on your finances.

Learning more about a small business loan does not mean you have to apply. Instead, you can use this process to better understand what goes into obtaining a loan, how it could benefit you, and which steps to take if you decide it is the right decision.

Every business is in a unique position. For example, you may be seeking a loan despite the fact that your credit is less than excellent. Or maybe you are buying a home at the same time you are seeking a business loan.

Regardless of your situation, there are things you need to understand about applying for a business loan, before starting the application.

• 1. Prep your finances before you start

The process of getting started is easier than most people realize. This is all about organizing your finances, knowing your options, and moving forward in the appropriate manner.

Here are two things you want to do before you get started:

Organize your finances

One of the primary fears associated with a small business loan application is the amount of information required. There is no way around this, as every lender requires a variety of information. The U.S. Small Business Administration provides helpful information about loans and the financial documents required to apply for various types of loans.

Know what type of business loans are available, the terms and conditions associated with each one, and the process of applying. It may take some time to collect this information, but it will help you make the best decision going forward.

• 2. Decide if you want to apply to a local bank or online

Many years ago, the only way to obtain a small business loan was to get in touch with a local lender and let them guide you through the process.

In today’s world, getting an online business loan is also an option. But, what does that mean for you? Where should you start? Let’s break it down:

The benefits of dealing with a local bank:

• Ability to meet face to face throughout the process
• You may already have an existing relationship with the bank
• Opportunity to ask others in your area about their experience with the lender
• A bank loan will always be cheaper than an online loan

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

The advantages of an online business loan:

• Faster time to funding
• Easier applications
• Ability to connect with multiple lenders via one application
• Options for those with bad credit

Obviously, both products have benefits, but there are only two questions you should really ask yourself to decide where to start your search:

Can I qualify for a bank loan?

Bank loans are notoriously hard to get approved for. You’re going to need a 700+ credit score, strong revenues, profitability, and good cash flow. If this sounds like your business, you should probably start with a bank, as you stand a better chance than most, and to reiterate, a bank loan will always be the lowest cost capital available.

How fast do I need this money?

Even if you think you could get approved by a bank, keep in mind that the process could take weeks, if not months. If you need cash fast, your best option is going to be online. Many online lenders can get you funded in days, and it may be worth it for you to pay a little bit more to meet this immediate need.

Only you can decide which option is best for you and your company, but make sure to be honest with yourself about your approval chances, and what you really need this money for.

• 3. Think like a lender

You’ve prepped for your loan search, decided where you want to start the search, so lets talk about what lenders will be looking for during this search. Now, every lender has different criteria they use to underwrite, but here are the most common factors these lenders will consider:

• Desired loan amount. Yes, the loan amount you want could affect your chances of finding funding. Most often, lenders will not make a loan greater than eight to 12 percent of your annual revenue. So if you have $50,000 a year in revenue, you’re doing yourself a disservice by asking for a $300,000 loan.
• Loan purpose . What are you going to use this loan for? Depending on your answer, you may not be able to work with certain lenders. For example, if you’re looking to buy out a partner or acquire a new business, you might have more trouble finding a loan than if you were looking for working capital or to expand your business. Be upfront and specific about how you intend to use the funds with any lender.
• Credit score. Your personal credit score is a very important factor in the process. Some lenders have a set threshold that they can work with (only borrowers with a 600+ credit score, or 700+, for example.). You should pull your credit score before you apply, and then ask lenders what their minimum credit score requirement is. This way, neither of you waste your time.
• Annual revenue. Lenders want to know your business is making enough to pay back your loan. The higher your revenue, the better.
• Average bank balance. Not only do lenders want to know how your sales are, but they want to know how you manage the cash coming in. Almost every lender will ask to see your business bank statements to verify what your average bank balance is. They want to know you keep cash on hand, ensuring your business has the funds to cover loan payments.
• The profitability of your business . To reiterate, it’s great if your business has strong sales, and your bank balance is solid, but if your business isn’t profitable, lenders may be hesitant to work with you. How will the loan payment work into this equation? That being said, lack of profitability can happen when businesses experience high-growth, so if you aren’t profitable, you still might have a chance, as long as the other factors are strong.
• Industry. There are some industries that certain lenders deem “riskier,” and every lender is different. Along with asking a lender what their minimum credit score threshold is, ask them if they will work with your industry.
• 4. Follow best practices

Before you do anything, review the business loan application in its entirety. If you have any questions, reach out to the lender before starting. This will clear the air and improve your chances of avoiding mistakes that delay the process.

As you move through the application, these tips are critical to your success:

• Be truthful and accurate with every bit of information you provide. Lenders will require certain documentation to verify this information (such as your tax returns to verify revenue), so you need to make sure your answers match what these documents reveal.
• Be thorough. More information is always better.
• Don’t delay in providing follow-up information, if required. You want to provide lenders with what they need while your application is still top of mind.

Once you have an application in front of you, the only thing left is to complete it and wait for final word from the lender. 

Create a business plan that maximizes your chances of securing funding

Meredith Wood is the Editor-in-Chief at Fundera , an online marketplace for small business loans that matches business owners with the best funding providers for their business. Prior to Fundera, Meredith was the CCO at Funding Gates. Meredith is a resident Finance Advisor on American Express OPEN Forum and an avid business writer. Her advice consistently appears on such sites as Yahoo!, Fox Business, Amex OPEN, AllBusiness, and many more.

Table of Contents

Related Articles

10 Min. Read

How Payday Loans Can Harm Your Business and Ways To Avoid Them

3 Min. Read

Asset-Based Lending vs. Traditional Bank Lending Explained

What Lenders Look for in a Business Plan

4 Min. Read

5 Reasons Why Credit Unions Are Better For Your Business

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

How to get a business loan in 6 steps

Advertiser disclosure.

We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.

Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.

How We Make Money

The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.

• Share this article on Facebook Facebook
• Share this article on Twitter Twitter
• Share this article on LinkedIn Linkedin
• Share this article via email Email

• • Auto loans
• • Personal loans

• Connect with Pippin Wilbers on LinkedIn Linkedin
• Get in contact with Pippin Wilbers via Email Email

The Bankrate promise

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money .

Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.

Bankrate follows a strict editorial policy , so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts , who ensure everything we publish is objective, accurate and trustworthy.

Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money.

Editorial integrity

Bankrate follows a strict editorial policy , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.

Key Principles

We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.

Editorial Independence

Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.

How we make money

You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.

Bankrate follows a strict editorial policy , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.

We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.

Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.

Key takeaways

• The type of business loan you choose depends largely on why you need the loan and what you’ll be using it for.
• Lenders set their own qualifications for business loans, including time in business, personal and business credit score, annual revenue and collateral.
• The application process may vary depending on the lender and type of loan, and the funding time can range from a few days to 90 days or more.

Getting a business loan requires careful research and consideration to make sure you’re choosing the best funding option for you. Different loans serve different purposes, so researching loan options is a good starting point.

You’ll also need to make sure that you meet the lender’s requirements for credit score, time in business and cash flow, ensuring that your business can easily handle loan repayments. Let’s walk through the process of choosing and applying for a business loan step by step.

1. Choose a type of loan

The type of business loan you choose depends largely on why you need the loan and what you’ll be using it for. You might need a business loan to:

• Purchase equipment, assets or real estate
• Restock inventory
• Fund the development of a product
• Pay for an emergency expense
• Keep payroll and accounts payable up to date despite gaps or delays in revenue
• Draw from as needed for small- or medium-sized purchases

You’ll see many types of business loans on the market, and each comes with its own advantages and disadvantages. Take a look at some of the most common business loans and what they’re best used for.

2. Decide how much you can afford to borrow

At the end of the day, how much you can afford to borrow depends on the wiggle room in your business finances. You want to use business profits to make repayments on the loan.

To find out whether your business can afford a loan, many lenders will use something called a debt service coverage ratio (DSCR). The ratio essentially figures your business’s yearly cash flow divided by the cost of the loan.

DSCR = annual net operating income / total annual debt, including principal and interest

Many lenders won’t consider any business with a DSCR below 1.25, and the higher the number, the stronger you look.

For example, let’s calculate your DSCR if your annual net operating income is $500,000 and your loan’s yearly principal and interest is $225,000.

Step 1. Find your annual net operating income. Calculate your business revenue minus operating expenses.

Step 2. Calculate the yearly cost of your loan , including principal and interest. Use our business loan calculator to help you.

Step 3. Divide the annual net operating income by the annual loan cost.

$500,000 / $225,000 = 2.2222222

Here, your DSCR is 2.2, a number that shows a strong ability to repay the loan you’re vying for.

3. Check your eligibility

Requirements across lenders vary widely because lenders set their own qualifications for business loans . Brick-and-mortar banks tend to work with businesses that have a strong financial profile. Alternatives like online lenders may lower their qualifications, helping startups and business owners with subprime credit get a business loan.

Lenders may set requirements for:

Time in business

Traditional banks may require one to two years of business under your belt to qualify. Alternative and online lenders may fund businesses as young as six months old. Taking time to get your business on solid financial ground will help when making loan repayments.

Personal and business credit score

Since many small businesses don’t have established credit, lenders often use your personal FICO score to get a picture of your creditworthiness. For the best interest rates, most banks will look for a score of 680 or higher.  Online lenders may drop to the 500s to approve businesses with bad credit for a loan.

Once you’ve built up your business’s credit profile, lenders may rely on your business credit score to approve a loan. Your business credit score will range from 0 to 100 (or 0 to 300 with the FICO Small Business Scoring Service). The score factors in your company’s size, payment history, industry and other debts. A strong business credit score could mean that you don’t need to guarantee the loan with your personal assets.

Annual revenue

Most lenders require you to meet a minimum amount of revenue to prove you have enough cash flow for a loan. Requirements are different based on the lender and type of loan. Some lenders go as low as $40,000, while others set the annual revenue at $100,000 or more.

Collateral or personal guarantee

Since small businesses pose a higher risk to lenders, many lenders require you to secure the loan with assets like business equipment. Another way to secure the loan is to sign a personal guarantee , which allows the lender to seize your personal assets if you default on the loan. Some lenders require both.

Bank relationship

Relationships can make a big difference in managing your business finances and getting a loan. If your business finances are in a gray area, having an established bank relationship can help your business get approved for a loan.

And if you find yourself in a tight spot with repayments, your lender may be willing to work with you to defer payments or restructure the loan. You can start your banking relationship by opening a business bank account at your preferred bank.

4. Compare small business lenders

Once you’ve narrowed down the type of loan you need, you can compare lenders side by side to find the best small business loan for you. Take a look at the following types of lenders that offer small business loans.

Both traditional banks and online lenders offer wide-ranging loan amounts, anywhere from $5,000 to $600,000 or more. However, the interest rates are where you’ll see a real difference. Maximum interest rates for online lenders can range from 30 percent to 100 percent — much higher than you’ll see with banks.

Banks and credit unions

Banks and credit unions can offer APRs between 5.5 to 12 percent for conventional loans and lines of credit, though the exact rate varies based on your business’s financial standing.

Many banks also offer loans backed by the U.S. Small Business Administration. As of April 2024, SBA loans have interest rates between 11.50 to 16.50 percent, and you can secure loan amounts up to $5 million. Repayment terms may also stretch out longer than conventional loans, ranging from five to 25 years.

Community Development Financial Institutions

Community Development Financial Institutions (CDFIs) are a network of organizations that offer financial services and educational support to underserved communities. Each CDFI serves a specific target group for the purpose of building up the community, and they often accept customers with poor or no credit history.

If you’re part of an underserved community, working with a CDFI could help you build a sustainable business through funding, mentorship and additional resources.

Minority Depository Institutions

Minority Depository Institutions (MDIs) are financial institutions in which minority individuals own most of the stock or the board of directors are mostly minority individuals. Many MDIs focus on serving minority communities, providing business loans to entrepreneurs who are historically underserved in the banking industry.

5. Gather required documents

Lenders not only need to know your business’s financial standing and legal status, but they also want documentation on how you plan to use the loan and its expected effect on your business. When you apply for a business loan, your lender should have a full list of required documents . Some of the documents you should have ready to go include:

• Personal documentation. Your lender may request information about your finances, background, other sources of income and resume. If you have a business partner or co-owner, you must include their information too.
• Business plan. While not every lender will require a business plan, having one is beneficial. Your business plan should outline how you intend to use your loan funds and how additional financing will benefit your business. You should also include how the funds will improve revenue and your ability to repay the loan.
• Business financial statements. Most lenders require two years of income tax returns, balance sheets, profit and loss statements, bank statements and cash flow projections to determine if your business can repay a loan.
• Legal documents. To prove ownership and your business’s status, you’ll need to provide business insurance, a business license and any other legal documents pertaining to your business.

6. Apply for a business loan

Most lenders — both banks and online lenders — offer online applications that require minimal initial paperwork. With some banks, you’ll go in person to apply for the loan. In this case, you may want to contact the bank for a list of required documents ahead of time.

Once your application is received, the lender should be in contact within a few days to discuss your business’s eligibility and any additional paperwork required. But, the exact amount of time until you get the funding can vary depending on the lender and type of loan.

Every lender is different. Some may take only a few days to review your application. Others may take weeks. Many online lenders boast funding in as little as one to two business days. An SBA loan can take 30 to 90 days or more to fully process.

However, since the average application requires basic documentation, you can have a Small Business Development Center review it. They can give you tips, advice and strategies on improving your application — and thus your chances for approval.

Bottom line

If you’re considering applying for a business loan, you first need to decide what type of loan your business needs, how much you can afford and if your business meets the minimum qualifications.

Reach out to lenders you have worked with in the past or banks you already have a relationship with to discuss the process. You could also meet with a business advisor or a member of a Small Business Development Center in your area to learn more about what your business may qualify for.

Frequently asked questions

How hard is it to get a business loan, what disqualifies you from a small business loan, how long does a business loan take to get.

Related Articles

How to get a startup business loan: 5 steps

How to get a business loan with bad credit

How to get a secured business loan

First-time small business loan: 6 things to know

Loan Officer Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped thousands of loan officers develop business plans to grow their businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a loan officer business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Loan Officer Business Plan?

A business plan provides a snapshot of your loan business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Loan Officer

If you’re looking to grow your existing loan business, you need a business plan. A business plan will plan out the growth of your loan business in order to improve your chances of success. Your loan business plan is a living document that should be updated annually as your company grows and changes.

Finish Your Business Plan Today!

If you want to grow your loan officer business, you need a business plan. Below are links to each section of your loan officer business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

In it you must provide an overview of each of the sections of your plan. For example, give a brief overview of the loan industry. Discuss the type of loan business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of loan business you are operating.

For example, you might operate one of the following types of loan businesses:

• Commercial Loan Officer : this type of loan business focuses on arranging business loans.
• Consumer Loan Officer: this type of business focuses on providing loans for things such as vehicles.
• Mortgage Loan Officer: this type of loan obtains loans for consumer to purchase real estate.

In addition to explaining the type of loan business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, dollar value of loans arranged, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the loan industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the loan industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your loan business plan:

• How big is the loan industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your loan business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your loan officer business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: parents, students, professionals, businesses, couples, families, prospective home buyers, prospective car buyers, contractors, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of loan business you operate. Clearly, someone interested in purchasing a new car would respond to different marketing promotions than a business seeking equipment financing, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most loan businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Loan Officer Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other loan businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes commercial banks, online loan brokers, etc. You need to mention such competition as well.

With regards to direct competition, you want to describe the other loan businesses with which you compete. Most likely, your direct competitors will be loan officers located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of loans do they specialize in?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide higher value loans?
• Will you offer lower interest rates on loans?
• Will you provide better customer service?
• Will you offer a wider variety of loan options?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a loan officer business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of loan company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to loans, will you provide insurance, financial advisory, or real estate services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your loan company. Document your location and mention how the location will impact your success. For example, is your loan business located near a real estate brokerage, or car dealership, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your loan officer marketing plan is the promotions section. This is perhaps the most important section of your plan. Here you will document how you will drive customers to your website and/or location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your loan business, including processing loan applications, arranging signings, marketing your business, paperwork, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to arrange your 100 th loan, or when you hope to reach $X in revenue. It could also be when you expect to expand your loan business to a new city.  

Management Team

To demonstrate your loan business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing loan businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience as a loan officer or success being a local bank or credit union manager.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you work on commission, or on a fee for services model? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your loan business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a loan business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or outline your strategic partnerships with local realtors and lenders.  

Putting together a business plan for your loan officer business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the loan industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful loan business.  

Loan Officer Business Plan FAQs

What is the easiest way to complete my loan officer business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Loan Officer Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of loan officer business you are operating and the status; for example, are you a startup, do you have a loan officer business that you would like to grow, or are you operating a chain of loan officer businesses?

Don’t you wish there was a faster, easier way to finish your Loan Officer business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Home > Finance > Loans

How to Properly Write a Business Loan Request

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure .

Have to submit a business loan request letter as part of your loan application? Not sure how to get started?

We don’t blame you. These kinds of letters aren’t as common as they used to be. While online lenders don’t usually ask for small-business loan requests, some traditional banks and credit unions still do. And if you apply for an SBA business loan (a loan backed by the US Small Business Administration), you’ll need a small-business loan request as part of your loan application package.

No matter which lender you’re applying with, this guide will help you write a strong business loan request letter―and to get the business loan you need.

How to write a business loan request letter

• Start with the easy stuff
• Write a brief summary
• Add information about your business
• Explain your financing needs
• Discuss your repayment plan
• Close the letter

1. Start with the easy stuff

Writing a loan request can feel overwhelming. After all, it’s not an everyday part of being a small-business owner. What do you say when applying for a bank loan? How do you write a business proposal for your loan application? What’s your lender even looking for in a business loan request letter?

That’s why we suggest starting your request writing process with the easy bits: formatting.

You’ll want to begin your business loan request with some pretty standardized formatting that includes your contact information, the date, your lender’s contact information, a subject line, and a greeting.

Typically, you’ll want to format the beginning of your small-business loan request roughly like this:

First and last name

Business’s name

Business’s phone number

Business’s address (this one is optional)

Lender name (or loan agent’s name and title, if you have one)

Contact information for your lender or loan agent

Subject line

Obviously you can simply plug in the relevant information for most of this. Easy peasy, right?

You’ll really only have to come up with your own subject line and greeting. But don’t overthink it. Something like this will work just fine for your subject line:

• Re: [Your business’s name] business loan request for [loan amount]

Likewise, keep your greeting simple. “Dear [lender]” or “Dear [loan agent]” will do quite nicely.

Got all that? Then you’re ready to get into the actual loan request.

By signing up I agree to the Terms of Use.

2. Write a brief summary

Before you dive into the meat of your loan request, you should give a brief summary of your letter. Just write a short paragraph that says why you’re writing and what you want.

So you’ll probably want to include the following details:

• Business name
• Business industry
• Desired loan amount
• What you’ll use the loan for

No need to get fancy with this. You’re trying to condense the most important information into one or two sentences.

For example, your summary might look something like this:

• I’m writing to request a [loan amount] loan for my small business in the [industry name] industry, [business name]. With this loan, [business name] would [describe your intended business loan use].

As you can see, you don’t need much detail here. You’re just giving the reader a quick overview of what’s to come.

And now that you’ve given them that preview, it’s time to get more in depth.

Remember, your lender isn’t here to grade your writing. Try to use good spelling, grammar, and punctuation―but don’t stress about crafting beautiful sentences.

3. Add information about your business

Your next section should add more detail about your business. You’ll want to include information like this:

• Business’s legal name (if different than name used)
• Business’s legal structure (LLC, partnership, S corp, sole proprietorship, etc.)
• Business’s purpose
• Business’s age (or date it began operating)
• Annual revenue
• Annual profit (if applicable)
• Number of employees

Now, keep in mind that you’re not trying to give your reader an encyclopedic history of your business. Instead, you’re trying to show that you have a well-established business―one that’s solid enough to deserve a business loan. So focus on relevant details that show your business’s maturity.

You can keep this section as short as a few sentences or as long as a few (brief) paragraphs. Just make sure you leave plenty of room for the next two sections.

4. Explain your financing needs

After discussing your business, it’s time to explain why you need a bank loan.

That means you’ll want to offer some details about how you plan to use your business financing. For example, you can talk about the employees you plan to hire, the building you want to expand, or whatever else you intend to do with your term loan .

Take note, though, that you also need to explain why your loan request makes sense. Because your lender doesn’t really care that you want a loan―it cares whether or not it makes sense to lend to you. You need to convince your lender that you have a good plan for your loan―one that will make it easy to repay the money you borrow.

Try to answer questions like these as you write this section:

• Why should your lender want to approve your loan application?
• What happens to your business if you get your small-business loan?
• What kind of growth will your business loan allow for?

Dig into your business plan and projections to find some good stats. Explain how hiring those additional employees will increase your revenue by a certain percentage or dollar amount. Break down how opening that add-on to your restaurant will allow you to seat a number of additional customers, and how much revenue you expect that to bring in.

The more specific you can get, the better. Because again, you’re trying to convince your lender that you’re borrowing as part of a thoughtful business plan ―not just because you want some cash.

And take your time with this part. In most cases, this section and the next one will form the meat of your business loan request letter. 

As a rule, you should keep your business loan request letter to one page.

5. Discuss your repayment plan

By this point, your lender should understand what your business does and why a loan would help it grow. Now you need to prove to your lender that you can repay your small-business loan.

This doesn’t mean you have to show precise calculations breaking down your desired interest rate and monthly payment. (After all, your bank probably hasn’t even committed to a specific interest rate yet.)

Instead, talk about things like your business’s past finances, other existing debts, and any projections can you offer.

So if you have a profitable business, point that out, and discuss how that will free up cash flow to repay your loan. Offer summaries of profit-and-loss statements that show your business has been growing. Tell your lender how you’ll pay off that existing loan within a few months, so they don’t need to worry about it interfering with repayment of your new term loan.

Put simply, this is your chance to convince your lender of your creditworthiness. Especially if you have a slightly low credit score or some other concern, you want to use this section to show that you will absolutely repay your loan.

6. Close the letter

Finally, you can add a few finishing touches.

Usually you should close with a short paragraph or two that refers the reader to any attached documents (like financial statements) and asks them to review your loan application.

You may also want to include a sentence expressing willingness to answer any questions―or just saying you’re looking forward to hearing back.

Then end things with your signature, list any enclosed documents, and you’re done!

Well, sort of.

At this point, we strongly recommend you print off your business loan request letter and read it―out loud, if possible. This will help you catch any errors. Because no, your lender isn’t a writing teacher, but you still want to make a good impression.

Plus, if you make typos on something like your business name or desired loan amount, that inaccuracy could lead to confusion from your lender―slowing down your loan approval process.

Once you’ve proofread your loan request letter, you’re ready to submit it to your lender. With any luck, your thoughtful letter will help convince your lender to give you that loan you want.

Loan proposal letter template

So how do all those steps look when you put them together? Something like this:

            First and last name

            Business’s name

            Business’s phone number

            Business’s address (this one is optional)

            Date

            Lender name (or loan agent’s name and title, if you have one)

            Contact information for your lender or loan agent

            Subject line

            Greeting

This first paragraph should summarize the rest of your letter. Keep it to just a couple sentences.

The next one to three paragraphs add more detail about your business. Include facts about its age, revenue, profit, employees, and other relevant information.

Then explain why you need financing and how you’ll use it to grow your business. This section can be a little longer (but remember your whole letter  should fit on one page).

Next, talk about how your business will repay your loan. You may want to mention how financial documents show your business’s financial health, for example.

Finally, close with a short paragraph or two that list any enclosed documents and invite the lender to consider your loan application.

Printed name

List of enclosed financial documents

That’s not so hard, is it? With this basic business loan request letter template, you can easily write your own personalized business loan proposal.

The takeaway

So there you have it―that’s how to properly write a business loan request.

Get your formatting right, include a short summary, talk about your business, explain your loan needs, prove you can repay your loan, and close things off. (And don’t forget to proofread.)

We believe in you. You can write this thing.

And good luck getting your loan application approved!

Don’t just tell your lender you can repay your business loan―make sure you can with our business loan calculator .

Related reading

Best Small Business Loans

• How to Get a Small Business Loan in 7 Simple Steps
• 6 Most Important Business Loan Requirements
• How Long Does It Take To Get a Business Loan?
• Commercial Loan Calculator

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

5202 W Douglas Corrigan Way Salt Lake City, UT 84116

Accounting & Payroll

Point of Sale

Payment Processing

Inventory Management

Human Resources

Other Services

Best Inventory Management Software

Best Small Business Accounting Software

Best Payroll Software

Best Mobile Credit Card Readers

Best POS Systems

Best Tax Software

Stay updated on the latest products and services anytime anywhere.

By signing up, you agree to our Terms of Use  and  Privacy Policy .

Disclaimer: The information featured in this article is based on our best estimates of pricing, package details, contract stipulations, and service available at the time of writing. All information is subject to change. Pricing will vary based on various factors, including, but not limited to, the customer’s location, package chosen, added features and equipment, the purchaser’s credit score, etc. For the most accurate information, please ask your customer service representative. Clarify all fees and contract details before signing a contract or finalizing your purchase.

Our mission is to help consumers make informed purchase decisions. While we strive to keep our reviews as unbiased as possible, we do receive affiliate compensation through some of our links. This can affect which services appear on our site and where we rank them. Our affiliate compensation allows us to maintain an ad-free website and provide a free service to our readers. For more information, please see our  Privacy Policy Page . |

© Business.org 2024 All Rights Reserved.

• Personal Finance
• Managing Wealth
• Small Business
• Corporate & Institutional
• Our Commitments
• Explore Products & Solutions
• Starting Your Business
• Creating a Business Plan

How to Navigate Starting a Business with Student Loan Debt

If your fixed monthly bills include a student loan payment, you're one of the more than 43 million Americans who have federal student loans, or roughly 13% of the total population in the U.S. In fact, national student loan debt totals $1.73 trillion and the average public university student borrows $32,637 to attain a bachelor’s degree. [1]

These numbers may feel eye-opening, they shouldn’t deter emerging entrepreneurs from pursuing their dreams of business ownership. While it's generally not advisable to take on more debt than you can handle, managing financial obligations may help sharpen your business acumen, offer opportunities for more advanced budgeting, and help you identify business financing options.

Take new dental and medical practices, for example. There’s a lot of education, testing, licensing, residencies and on-the-job experience that goes into becoming a medical doctor or a dentist. And because the courses and requirements are rigorous, many students take on student loan debt.

With an average student debt load of about $251,000, [2] new grads often start their dental or medical practices weighed down with a large volume of outstanding loans. The benefits may outweigh the challenges as those new grads vie for higher incomes, greater career freedom and the chance to build practices that align with their individual visions.

The same can be said for the budding entrepreneurs who set their sights on being their own boss, pursuing a passion, building wealth or making a difference (e.g., solving problems, addressing social causes or creating positive change).

Explore Your Options

Entrepreneurs with student loan debt can still successfully pursue their great business ideas. Here are some options for entrepreneurs who are in this position and looking to start a new business:

Personal finances or current employment. About 78% of new entrepreneurial ventures are self-funded, according to SCORE. Nearly half (42%) had about $5,000 in cash reserves and 49% started with over $10,000 in funds. [3] These bootstrapping entrepreneurs didn’t let their current debt loads stand in their way; they decided to get resourceful, which means you can too.

Alternative student loan repayment options. Here are some ways to whittle down or even eliminate student loan payments during your company’s startup phase: 

• Income-driven repayment plans effectively “cap” payments as a percentage of your current income. This can reduce your loan payments during your company’s startup phase, when it’s not producing any revenues yet.
• You can use student loan refinancing on private loans. Your income and credit score will be considered during the refinancing process. It's important to note that both federal loans and private student loans can be refinanced into a private student loan refinance product, yet federal loan benefits may be lost in the process.
• If you qualify, you may also consider student loan forbearance , which is a temporary pause of your loan repayments, during which time interest will continue to accrue. Forbearance programs are available for both private and federal student loans.
• You may also want to explore debt consolidation , whereby you consolidate multiple loans into a single loan. This may simplify your repayment process and could potentially save you money via a lower interest rate. For example, the Federal Direct Consolidation Loan program requires an application and allows borrowers to select the loans they want to consolidate and select a new monthly repayment plan.
• Business financing. Banks like PNC offer a wide range of business financing options, some of which require no collateral. For example, the bank offers lines of credit from $2,000 - $100,000 with variable interest rates on an unsecured basis. It also offers SBA loans that are typically more flexible—both in terms of structure and terms—and generally requires lower down payments than conventional loans. PNC has a history of helping business customers match their financing needs with the appropriate SBA lending program.
• Continuing education. There are many free and low cost educational resources, webinars and workshops available online, where you can equip yourself with the skills needed to get your business on the fast track to generating revenue — allowing you to continue your education without adding to your current student debt load. Consider building your knowledge base by exploring free courses targeted at your industry, joining a low-cost entrepreneurial program, or attending networking events. 
• Business grants. Uncle Sam offers several types of grants specifically for small businesses. Start your search for federal government grants at Grants.gov. This government site offers the most comprehensive database of funds the government is going to give away. There are thousands of grants to apply for and opportunities for a wide range of businesses.

Follow Your Entrepreneurial Path

Building a new business from scratch is never easy, but it’s particularly daunting for someone who has student loan debt. You can conquer these fears by identifying cost savings, using an auto-pay program and always making timely loan payments. Additionally, you might aim to reduce your spending on nonessentials and use discretionary income to build up your savings.

It’s also smart to have an emergency fund that will cover at least six months' worth of necessary expenses. This will help you work through any “unprofitable” periods and help address some of the “startup stress” that’s a natural part of being a new business owner.

Get Started

Make today the day you

put these business insights to work.

Important Legal Disclosures and Information

1. Student Loan Debt Statistics, Education Data Initiative, https://educationdata.org/student-loan-debt-statistics#:~:text=Student%20loan%20debt%20in%20the,have%20federal%20student%20loan%20debt. 2. Hanson, Melanie, Average Medical School Debt,https://educationdata.org/average-medical-school-debt#:~:text=The%20average%20medical%20school%20debt,school%20graduates%20have%20educational%20debt 3. Weston, Bridget, How Do Entrepreneurs Finance Their Startups?,https://www.score.org/resource/blog-post/how-do-entrepreneurs-finance-their-startups 

PNC and PNC Bank are registered marks of The PNC Financial Services Group, Inc. ("PNC").

All loans, lines of credit and PNC Bank credit cards are subject to credit approval. Requires automatic deduction from your PNC business checking account. Other fees and charges may apply. May be subject to a property appraisal.

These articles are for general information purposes only and are not intended to provide legal, tax, accounting or financial advice. PNC urges its customers to do independent research and to consult with financial and legal professionals before making any financial decisions. This site may provide reference to Internet sites as a convenience to our readers. While PNC endeavors to provide resources that are reputable and safe, we cannot be held responsible for the information, products or services obtained on such sites and will not be liable for any damages arising from your access to such sites. The content, accuracy, opinions expressed and links provided by these resources are not investigated, verified, monitored or endorsed by PNC.

• Best for large loan amounts
• Best for good credit
• Best for lower credit scores
• Best for credit card consolidation
• Best for small loan amounts
• Online Loans FAQs
• Why You Should Trust Us

Best Online Loans of May 2024

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate personal loans to write unbiased product reviews.

An online loan works like this: You apply to borrow a certain amount of money. The lender will show which offers you qualify for based on factors such as your credit score, debt-to-income ratio, and ability to repay the loan. The best online personal loans will offer a variety of term lengths and low interest rates.

Some lenders have minimum credit score requirements that might make you ineligible for one of their loans. Others may allow you to get a loan with a poor credit score, but could saddle you with high interest rates as a result. If you're going to borrow money with an online loan, make sure you understand how much it will cost you each month, and that you have a plan to pay it back.

The Best Online Loans: Convenience and Smart Solutions

Advantages of online lending.

Online lenders can stand out from their brick-and-mortar counterparts by providing convenience and competitive rates. The qualification and application process is typically very streamlined, allowing you to apply and get your loan funded entirely online.  Many online lenders also offer very quick turnaround times, with some able to get you your money either the same day or the day after it's approved.

Types of Loans Available Online

In addition to personal loans, many online lenders offer a range of other types of loans. These include student loans , business loans, and auto loans.

You can also find home loans like mortgages and home equity lines of credit online through providers such as Rocket Mortgage and Ally .   

Best Online Personal Loans

If you want to use an online loan provider for a personal loan, here are a few of the best places to start your search.

Best for large loan amounts: LightStream Personal Loan

Best for good credit: sofi personal loan, best for lower credit scores: avant personal loan, best for credit card consolidation: payoff loan™, best for small loan amounts: upstart personal loan, best online personal loan company reviews.

The best online personal loans offer the convenience of signing up from home, plus quick access to funds. We chose the best online loans by looking at lenders' trustworthiness across sites like the Better Business Bureau, and by focusing on the following features: loan term options, loan amounts offered, interest rates, and minimum credit score.

0.50% discount on regular rates with AutoPay

6.99% to 25.49% (with AutoPay discount, rates vary by loan purpose)

$5,000 to $100,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APR
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Approval decisions should come shortly after applying
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Loans can be funded the same day
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Wide range of borrowing amounts and terms
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No fees
• con icon Two crossed lines that form an 'X'. Only available to people with good credit
• con icon Two crossed lines that form an 'X'. No pre-approval option

LightStream offers some of the lowest rates on personal loans out there, provided you have a great credit score. The lender also has loans of up to $100,000 and can supply you with funding on the same day you apply and are approved.

• Loan amounts range from $5,000 to $100,000
• Loan term lengths range from 2 to 12 years
• Apply online and you'll receive a response shortly during business hours.
• Receive your funds as soon as the same day
• Loans are made by Truist Bank, member FDIC

LightStream's online loans are best for those with good credit. While you can qualify for a loan with a minimum score of 660, you won't be able to take advantage of LightStream's lower rates without a score of around 800. The lender also has slightly more stringent eligibility requirements than some of our other top picks, including several years of credit history, stable income, and few or no payment delinquencies on your credit report.

If you're looking to borrow a large sum of money, LightStream's maximum loan amount of $100,000 is significantly higher than most of the other lenders on our list. Its minimum APR is one of the lower on our list of top picks, reducing the overall cost of your loan.

LightStream Personal Loan Review

0.25% AutoPay interest rate discount and a 0.25% direct deposit interest rate discount

8.99% - 29.49% fixed (with all discounts)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High maximum loan limit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Unemployment protection
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No fees required
• con icon Two crossed lines that form an 'X'. High minimum credit score requirement
• con icon Two crossed lines that form an 'X'. High minimum loan amount
• con icon Two crossed lines that form an 'X'. No in-person support

SoFi is a strong personal loan lender for those with high credit scores — you'll get perks like unemployment protection and no fees required. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.

• Loan term lengths range from 2 to 7 years
• Usually receive your money in a few business days after your application is approved
• Unemployment protection if you lose your job during your loan repayment, allowing you to apply for a three-month forbearance, up to a total of 12 months
• Loans are made by SoFi Lending Corp.

SoFi has the highest minimum credit score requirement of any lender on our list. You'll need at least a credit score of 680 to get one of its personal loans online. But if you do qualify, you may like the lender's low rates, high range in loan amounts, and unique perks.

Even if your credit history isn't immaculate and you aren't eligible for SoFi's lowest rate, the company's maximum APR is the lowest on our list. SoFi offers a higher maximum online loan amount than most other lenders, allowing you to take out up to $100,000.

Additionally, the company has no origination fees required and has no late payment penalty, lowering the overall cost of your loan. If you lose your job through no fault of your own, SoFi also has an unemployment protection program. If approved for the program, SoFi will put your loans into forbearance, suspending your monthly payments. It's worth noting that interest will continue to accrue on your loan when it is in forbearance. 

SoFi Personal Loan Review

Offers emergency, home improvement, and debt consolidation loans

9.95% to 35.99%

$2,000 to $35,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Funds generally deposited by the next business day
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No prepayment penalty
• con icon Two crossed lines that form an 'X'. Multiple types of fees
• con icon Two crossed lines that form an 'X'. High maximum APR
• con icon Two crossed lines that form an 'X'. Low maximum loan limit

Avant Personal Loan is a good personal loan provider, especially if you have a lower credit score and need to receive your loan money quickly. Just be prepared to pay a high APR if you do have a low score.

• Loan amounts range from $2,000 to $35,000
• Loan term lengths range between 2 to 5 years
• Administration fee of up to 4.75%, which will be deducted from your loan proceeds when the loan is funded, and late fee that varies by state
• Loans made by WebBank, member FDIC

Avant is one of the easier lenders to qualify for on our list. Its minimum credit is just a guideline, not a requirement, but most borrowers who get Avant's personal loans online have a credit score between 600 and 700. However, you can likely get a lower rate elsewhere if you have a high credit score. The best 0% APR credit cards  may also offer a lower APR, provided you're eligible. 

If you are looking for a smaller loan, Avant's $2,000 minimum is lower than most comparable lenders. Avant funds online loans quickly — if the company approves your loan by 4:30 p.m. CT Monday through Friday, funds are often put into your account by the next business day.

Avant also has excellent customer service hours, with its phone line open at least 13 hours every day of the week. The lender also has a strong mobile app, which is something not all lenders offer. 

Avant Personal Loan Review

The minimum rate for loan amounts above $15,000 is 11.75% APR

11.72% - 17.99% fixed

$5,000 to $40,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive interest rates
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No prepayment or late fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low minimum credit score requirement
• con icon Two crossed lines that form an 'X'. Origination fees
• con icon Two crossed lines that form an 'X'. Slow access to funds
• con icon Two crossed lines that form an 'X'. Limited loan purpose
• con icon Two crossed lines that form an 'X'. Not available in all states

A Happy Money Payoff Loan personal loan is a great option for those with good credit scores who are eligible for the lender's lowest APR. However, borrowers can only use the funds to consolidate credit card debt.

• Loan amounts range from $5,000 to $40,000
• Origination fee anywhere between 0% and 5%
• Won't be able to get a loan from Happy Money if you live in Maine, Massachusetts, Nebraska, or Nevada
• Can only use for credit card debt consolidation
• Loans made by one of Payoff's lending partners

Happy Money® could be another good option for an online loan if you have a lower credit score, as its minimum requirement of 640 is relatively low. If you have a good credit score, the company also offers one of the lowest APRs of lenders on the list. 

Happy Money's Payoff online loans are specifically designed to help borrowers eliminate high-interest credit card debt. This means you are limited in what you can use your loan for — you should choose a different lender if you aren't aiming to consolidate credit card debt. 

The company doesn't charge any prepayment fees or late fees, but may charge an origination fee between 0% to 5%. Happy Money also has one of the slowest money transfer times of any online loan company, as it takes between two to five business days to have money deposited in your account. 

Happy Money Personal Loan Review

You can prepay your loan at any time with no fee or penalty

6.40% - 35.99% fixed

$1,000 to $50,000 (borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Small minimum loan amounts
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Quick loan fund disbursement
• con icon Two crossed lines that form an 'X'. Only three and five year terms
• con icon Two crossed lines that form an 'X'. Potential for high origination fees

Upstart could be the right lender if you have a strong work and education history, but you have a low credit score or limited credit history. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.

• Loan amounts range from $1,000 to $50,000. However, borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100
• Loan term lengths are either 3 or 5 years
• Can have origination fees up to 8%
• Considers employment and education history when making loan approval decisions
• Loans are made through one of several Upstart-powered bank partners

You may qualify for an online loan more easily with Upstart than with some of the other lenders on our list — the minimum credit requirement for Upstart is 600. As a result, if your credit score is low, you might end up paying a high APR and could potentially get a better deal elsewhere. 

Upstart offers the smallest loan amount of all the lenders on our top picks, so if you just need a little cash to tide you over, this could be the lender for you. Additionally, the company usually funds loans within one business day, which is useful if you need your money fast. 

Upstart Personal Loan Review

Online Personal Loan Lender Trustworthiness

Whether you're interested in taking out a $5,000 loan  or a  $20,000 loan , finding the right lender can help improve your experience and increase the likelihood of success with your online personal loan application. We've only selected providers of online loans with no public controversies in the last three years. We've also compared each institution's Better Business Bureau  score.

The BBB, a non-profit organization focused on consumer protection and trust, measures businesses based on factors like their responsiveness to consumer complaints, truthfulness in advertising, and clarity about business practices. Here is each company's score:

All of our top picks for online loans are rated A or higher by the BBB. Keep in mind that a high BBB score does not guarantee a positive relationship with a lender, and that you should continue to do research and talk to others who have used the company to get the most comprehensive information possible. 

What Makes an Online Loan the 'Best?'

Finding the best fit for an online loan.

To find the best choice for your individual situation, take stock of the factors that are most important to you before you apply for a personal loan online.

Competitive Rates & Fees

Many borrowers prioritize the lowest loan interest rate when choosing a lender. You can find a very wide range of APRs between lenders. Since the interest rate determines how much you'll ultimately repay, it's important to compare online loans offered by a wide range of lenders.

You'll also want to make sure you understand any fees the lenders charge, including application fees, origination fees, and late fees. These can add a significant amount to the total cost of your loan. Many online lenders charge low fees or none at all.

Speed and Convenience

Borrowers may find it faster and easier to take out a loan from an online lender. Many offer a prequalification process, which enables you to get an idea of the interest rate, terms, and other features of a loan you might qualify for without any impact on your credit score. Online lending platforms also frequently have useful loan calculators and other tools you can use to research before you apply for an online loan. The best online personal loan lenders also tend to have very fast funding times, with some able to get the money into your account the same day your application is approved.

Customer Experience

Remember that with an online lender, there's very little human contact during the process. And when you do have questions or need assistance, it often comes from automated chatbots. If you have a lot of questions and prefer the human touch to address concerns about your individual situation, you might be better off applying for a loan in person at a bank or credit union.

Best Online Loans FAQs

Reputable online lenders use the same encryption and security measures as banks. Always verify a lender's reputation and customer reviews.

Yes, the rates offered by online lenders are often better than those you'll find at a bank. Online lenders have lower overhead costs, which can translate to more competitive rates for borrowers.

Some online lenders offer same-day or next-day funding. The speed depends on their processes and your loan type.

You do not need perfect credit to get an online loan. While the best rates go to those with strong credit, many online lenders cater to a wider range of credit profiles.

No, it is not difficult to apply for loans online. Online lenders focus on user-friendly applications. Many offer pre-qualification to check your potential rates with no impacton your credit score.

Why You Should Trust Us: Our Methodology

Personal Finance Insider's mission is to assist smart people in making the best decisions possible with their money. With that in mind, we compared many different online loans, digging into the fine print so you don't have to. We evaluated several factors to determine the best lenders, including:

• Annual percentage rates: The lower the interest rate you have to pay on your online loan, the better. So we focused on lenders who have solid rates for people with fair or better credit histories.  
• Loan term length:  We looked for online loans with a variety of repayment lengths. 
• Loan amount range:  We know some people are looking for a small amount of cash, while others are looking to take out a substantial amount. We found lenders with a variety of minimum and maximum loan amounts to best fit your needs.  
• Minimum credit score: Depending on your credit score , you may be eligible to take out an online loan from some lenders and may not qualify with others. We picked lenders with a range of minimum credit scores so you have options no matter your credit history.
• Trustworthiness:  Borrowing from an honest lender is often a top priority for many people. We made sure each lender had an A or above grade from the Better Business Bureau to provide the most transparent lenders possible.

See our full ratings methodology for online loans and personal loans » 

OneMain Financial Personal Loan disclosure: Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral) and your state of residence. If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit  omf.com/loanfees  for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB's Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: $3,100. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. Borrowers in these states are subject to these maximum loan sizes: North Carolina: $9,000 for unsecured loans to all customers, $9,000 for secured loans to present customers. Maine: $7,000. Mississippi: $15,000. West Virginia: $14,000. Loans to purchase a motor vehicle or powersports equipment from select Maine, Mississippi, and North Carolina dealerships are not subject to these maximum loan sizes. Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07. Time to Fund Loans: Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

**Enrollment required.

• Main content

Bad credit score? Learn 5 ways to secure a business loan

S tarting a business and making it successful takes a lot of passion and determination. If you're eager to start your own venture, having a solid business plan is crucial. But, to turn that plan into reality, you often need sufficient funds. If you don't have enough money, applying for a small business loan is a common solution. However, it can be challenging to secure financing if you have a bad credit score. In such situations, there are alternative options to explore.

Consider a business credit card

Instead of a traditional business loan, you can opt for a business credit card. You can apply for one with or without an employer identification number, making it versatile for different types of businesses. However, keep in mind that having a low credit score might result in higher interest rates and lower credit limits. A secured credit card, backed by a deposit acting as collateral, is a good option for small businesses with poor credit.

READ ALSO: 5 ways to improve your credit score without credit card

Explore alternative funding options

Securing a loan isn't the only way to finance your business. A merchant cash advance is an option for businesses that accept frequent credit card payments. It's not a loan but an advance based on credit card sales. Your credit history is less important in this process, making it suitable for businesses with bad credit.

Seek help from family and friends

When facing financial challenges, turning to trusted family or friends for help is a common choice. Instead of getting a loan, you can directly seek assistance from your loved ones. However, it's crucial to formalize the arrangement with a signed and notarized legal contract to protect both parties. Ensure that your relationships can withstand the financial dynamics before seeking a loan from family or friends.

Apply for SBA loans

Small Business Administration (SBA) loans provide benefits by guaranteeing a portion of the loan, reducing the risk for lenders. While businesses working with the SBA must have exhausted other options like bank loans, the credit score requirement is generally lower, making it an option for businesses with bad credit scores.

Improve your credit and reapply

If you are determined to secure a business loan, one effective strategy is to improve your credit score and reapply. This involves developing good financial habits, such as paying off debts and bills on time. Setting up automatic payments for electronic bills and using financial management apps can help you establish and maintain these habits.

Improving your credit score and exploring alternative funding options are key steps in overcoming the challenges of obtaining a business loan with bad credit. While it may not be easy, careful consideration of these alternatives and proactive efforts to enhance your creditworthiness can increase your chances of securing the financing your business needs.

For more news like this visit TOI . Get all the Latest News , City News , India News , Business News , and Sports News . For Entertainment News , TV News , and Lifestyle Tips visit Etimes

You are using an outdated browser. Please upgrade your browser to improve your experience.

• For business
• For advisors
• For brokers
• How to finance a new business

Last reviewed on May 10, 2024

Reading time: 11 min

• SME support
• Swoop guides
• Funding resources

Page written by Rachel Wait . Last reviewed on May 10, 2024 . Next review due October 1, 2025.

Powered by AiVOOV

If you’re looking to grow your new business, it’s important to know how to finance it. Financing your business in the right way will provide a solid financial base and ensure you have sufficient funding to help your business succeed. 

There are many different ways to finance a new business and different methods will suit different business types, as this guide explains.

What is business finance?

Business finance is simply the funding a business needs to operate. You’ll need funds to start, run or expand your business. Having sufficient funds available to you will help drive your business forward, allowing you to buy raw materials, hire staff, invest in equipment and so on.

Finance is the foundation of any business as it’s almost impossible to succeed without it. 

What are the best ways to finance a new business?

There are several ways to finance a new business, so it’s important to research each one carefully to help you decide which is the right option for you and your business. 

Personal investments

Investing your own money into your business can be quicker than applying for finance and, as you’re not borrowing from anyone, you won’t need to pay interest. Using your own money can also help to show any future lenders that you’re confident in your company’s success. 

You might have a lump sum to invest in your business if you’ve saved up enough over the years or if you’ve received a large redundancy pay out or inheritance.

Funding from family and friends

It can also be worth asking family or friends whether they would be willing to invest in your business. They might agree to loan you a lump sum which you agree to repay over a set term, with interest added. Or they might ask for a stake in your company in return for their investment. 

The advantage of borrowing through family or friends is that interest rates can be lower. The downside is that if things go wrong, your relationship could be affected. 

Whichever option you choose, make sure you have an official written agreement stating how everything will work. It should explain whether the money is a loan, investment or gift and, if you need to repay the money, it needs to state how repayments will be made and over what length of time, as well as what happens if you can’t repay it. 

Business loans

Business loans are a popular way for companies to borrow money as they give you access to a lump sum of cash which you then repay in monthly instalments over a set term, with interest on top.

Many high street banks and online lenders offer business loans, meaning you’ll have a wide range of options to choose from. Just be aware that some lenders might be less willing to offer you a loan if you haven’t been trading for long and if you don’t have much of a business credit history. 

To increase your chances of acceptance, you’ll need a detailed business plan that outlines your goals and how you plan to use the money. It’s also important to ensure that the amount you want to borrow is affordable so that you can keep up with your repayments. A longer loan term can help reduce your monthly repayments, but this also means you’ll end up paying more interest, making it more expensive in the long run. 

Startup loans

A startup loan is a business loan specifically aimed at new UK businesses to help them launch and grow. It works in the same way as any other business loan, as you borrow a lump sum that is repaid in monthly instalments at a fixed rate of interest. This funding can help you to pay for concepts, testing, designs, machinery, premises, marketing and more.   

To qualify for a startup loan you must be at least 18 years old and living in the UK and your business must have been trading for no more than 36 months. You will also need to be able to show that you couldn’t obtain a loan from alternative sources. 

It’s possible to get a startup loan with a mainstream bank, but the primary source for startup loans is the UK government-backed startup loan scheme, which is offered by the British Business Bank. You’ll usually find that these loans offer lower interest rates compared to business loans provided by mainstream lenders. You can typically borrow between £500 and £25,000 over one to five years. 

Equity investment

Equity investment is another option you could explore and involves selling a stake in your business in exchange for investment. Equity finance investors will have a claim on your future earnings as a result, but you won’t need to worry about repaying the capital or paying interest. 

You might choose to have multiple rounds of equity financing from different types of investors, such as business angels, venture capitalists and private equity funds.

Business angels or angel investors are high net worth individuals who have the money to invest into a business. They typically prefer to invest in startups and early stage businesses, making them ideal if you’re just starting out. Because they are usually experienced entrepreneurs, as well as being able to take advantage of their investment, you can also benefit from their skills, knowledge and contacts, all of which can help your business to grow. 

Business angels usually invest between £50,000 and £500,000 and they might work on their own or as part of an angel network. 

By contrast, venture capitalists won’t invest their own money in your business; rather they will invest other people’s. They do this by setting up a fund for others to buy shares in the company. They usually invest larger sums and the return on investment is often higher too. 

Private equity funds are pools of capital to be invested in a company, making this more suited to established private businesses. The money managed by the fund usually comes from institutional investors such as large pension funds, insurance companies and sovereign wealth funds. 

While venture capitalists tend to invest upwards of £250,000 in high-growth startups and early stage businesses that need capital and business expertise, private equity firms tend to invest much larger amounts, say upwards of £5 million, in established businesses that need a cash injection or a new strategy to help move them forwards. In return, they will usually have a large or controlling share in your business. 

You can find out more about how to find investors for your business with our guide.  

Crowdfunding

Crowdfunding enables you to collect money from a large number of people via online platforms. Depending on the type of crowdfunding you use, these people might get a share in the company or a reward in exchange for their investment. As well as helping you to raise money, crowdfunding can also raise the profile of your business, which can boost its chances of success. 

If you want to raise money through crowdfunding, you’ll need to decide how much money you need and then create a campaign to show what your business has to offer and why you need the investment. This will be displayed on the crowdfunding website for a set number of days. Platforms you can use include Seedrs , Crowdfunder and Crowdcube .

Be aware that not all crowdfunding campaigns succeed and you’re likely to have better luck if your business has good growth potential and offers an innovative idea. If your business model is fairly traditional, crowdfunding might not be the right choice for you. 

Peer-to-peer lenders

Peer-to-peer lending is a type of business loan that’s offered by a number of private investors usually through an online platform. The idea is that it removes the need for financial institutions like banks and, instead, matches those who need to borrow money with those who have money to invest. Borrowers get better interest rates than they would with a standard loan, while investors can get a better rate than they’d get on a standard savings account. 

If you’re thinking of applying, you’ll need to complete an application form on a peer-to-peer lending website. Your risk profile will then be assessed and you’ll be given a credit rating. After this, you’ll be sent different options from proposed lenders with varying interest rates and you can choose the best one for your business. The stronger your business profile, the lower the interest rate on your loan.

Business grants

A business grant is a sum of money awarded to a business to help it grow and develop. You can choose to invest the money in training, equipment or reaching new markets, for instance. Business grants are usually awarded by the government or other companies and, unlike loans, they do not need to be repaid.

Across the UK, there are hundreds of different grants you can apply for, but these will often be targeted at specific industries, community groups or types of business, so eligibility criteria will be tight. Depending on your business, you might be able to choose from the following:

• Innovation grants, which are provided by funding bodies such as Innovate UK to support innovative ideas and business growth. 
• R&D tax credits , which are cash payments from the government to encourage companies to carry out research and development projects related to science and technology.
• The National Lottery Heritage Fund which provides grants to sustain and transform the UK’s heritage.
• Local Enterprise Partnerships, of which there are 38 across England. These are voluntary partnerships between local authorities and businesses that provide business funding, support and guidance in their local areas. 
• The Prince’s Trust which supports young people who want to start and run their own business.

When applying for a business grant, you’ll need to write a business grant proposal to explain what you plan to do, how your business meets the grant qualifying criteria and what success looks like as a result of taking on the grant.

You can view the many options available to you by  registering with Swoop . There’s a wide range of grants available across several sectors including grants for manufacturing, tech businesses, transport, energy, information and communication technologies, security, climate, aerospace, food, health, environment, and more. 

How to choose the right finance option for your business

To help you decide which finance option is right for your business, you will need to think about how much funding you actually need, factoring in how much it will cost to get your business off the ground as well as operating costs for the year ahead. You’ll need to ensure you have enough money to get your business started, but you should also avoid borrowing more than you can afford to repay as this can ultimately lead to financial difficulty.

You then need to consider which of the above funding options might enable you to borrow this sum of money. Go through the different types of funding available and consider the pros and cons of each to help you decide which one might be the best fit. 

Ask yourself whether you’re happy to offer people a stake in your business in return for their investment, or if you’d prefer to opt for a traditional loan, which you will need to repay with interest. If you’d prefer to take out a business loan, check that you will be able to comfortably afford the repayments. Bear in mind that UK government-backed startup loans are unsecured and offer a lower interest rate compared to business loans offered by mainstream lenders.

It’s also important to consider eligibility criteria. If you’re looking into business grants, for example, you’ll need to meet strict eligibility criteria to qualify. If you’re not eligible, you’ll need to look at alternative options. 

Similarly, if you have a fairly traditional business model, crowdfunding might not be the most appropriate route for you to go down. 

If you’re not sure which funding option is right for your new business, the team of experts at Swoop will be happy to talk through your options and help you find the best solution for you. Get in touch today.  

Like what you see? Share with a friend.

Clever finance tips and the latest news

delivered to your inbox, every week

Join the 70,000+ businesses just like yours getting the Swoop newsletter.

Free. No spam. Opt out whenever you like.

By subscribing, I accept the privacy-policy and I give my consent to receive Swoop Funding e-mails about the latest updates and offers.

Rachel has been writing about finance and consumer affairs for over a decade, helping people to get to grips with their finances and cut through the jargon. She's written for a range of websites and national newspapers including MoneySuperMarket, Money to the Masses, Forbes UK, and Mail on Sunday. Rachel has covered almost every financial topic, from car insurance and credit cards, to business bank accounts and mortgages.

Swoop promise

At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

Find out more about Swoop’s editorial principles by reading our editorial policy .

Related pages

• 10 reasons why you need a business bank account
• Applying for an SBA loan: what you need to know before you start
• Business models: Types, examples, and how to design one 
• Checklist for buying a business
• Closing the racial funding gap: identifying the issues and asking what can be done to put money in the hands of BIPOC entrepreneurs
• Complete guide to vendor financing
• Debtor days: All you need to know
• Differences between a partnership and corporation
• Do tech platforms have a responsibility to address inequality?
• Funding your franchise: a guide for franchisees
• How do small business loans work
• How female founders can claim their fair share of global venture capital funding
• How long does it take to get a business loan
• How to agree to a business sale price
• How to become a certified minority-owned business
• How to build your business credit
• How to buy a business
• How to buy a business with bad credit
• How to calculate capital employed
• How to calculate EBITDA
• How to calculate liquidity
• How to calculate market size
• How to calculate profit
• How to calculate the cost of debt
• How to complete a VAT return
• How to convert money factor to interest rates
• How to create a business PayPal account
• How to do a stocktake
• How to download a bank statement
• How to file company accounts
• How to finance a business acquisition
• How to find a business acquisition broker
• How to find a business to buy
• How to get a business loan
• How to get a business loan with bad credit
• How to get an EORI number
• How to get venture capital funding
• How to pay off a cash advance
• How to plan for buying a business
• How to price a product
• How to run a successful business
• How to sell a percentage of your business
• How to use vendor financing to buy a business
• How to value a business
• How to value a company
• How to write an invoice
• Income statements: The full guide
• Match funding for grants explained – what is it?
• Nurturing your mental health: 9 ways to manage mental health as a business owner
• Pros and cons of buying a business: is it right for you?
• Scheduling K1 tax form: all you need to know
• Secured vs. unsecured business loans – what’s best for my business?
• SEIS – the Seed Enterprise Investment Scheme explained
• Swoop Quick Guide to Funding Jargon
• The two ways to ensure that your business enjoys a merry Christmas ‘21
• Traditional funding doesn’t like ecommerce. Good. This solution is better
• W-2 vs. 1099 employee
• What are assets, liabilities and equity?
• What are ROBS? 
• What is a DUNS number?
• What is a good profit margin?
• What is a personal guarantee?
• What is a W-2 employee? 
• What is Form W-9?
• Why business debt should NOT be treated like personal finances
• Why did my credit score drop?

Business loan calculator

We work with world class partners to help us support businesses with finance

18 Soho Square, W1D 3QH, London, UK

Suite 42, 4th Floor, Oriel Chambers, 14 Water Street, Liverpool, L2 8TD

Kingfisher Way, Silverlink Business Park, Newcastle upon Tyne, NE28 9NX, UK

Suite 105A, Airivo, 18 Bennetts Hill, Birmingham, B2 5QJ

Aberystwyth

Aberystwyth Innovation and Enterprise Campus Gogerddan Campus Aberystwyth University Ceredigion SY23 3EE

Dogpatch Labs, The CHQ Building, Custom House Quay, Dublin, Ireland

Suite 801, Level 8, 84 Pitt Street, Sydney, NSW 2000, Australia

180 John St, Toronto, ON M5T 1X5, Canada

43 W 23rd St, New York, NY 10010, United States

21 Dreyer Street, Cape Town, South Africa, 7708

Join the 70,000+ businesses just like yours getting the Swoop newsletter. Free. No spam. Opt out whenever you like.

• New Prepaid SIM
• International Roaming
• Switch Prepaid to Postpaid
• Port to Airtel Prepaid
• Buy New Connection
• Port to Airtel
• Free Sim Delivery
• Buy New DTH Connection
• Upgrade Box
• Buy Second DTH connection
• View Account
• Get New Account

AIRTEL BLACK

Airtel finance.

• Credit Card

AIRTEL BLACK NEW

• Personal Loan

How can Airtel users apply for Axis Bank Personal Loan?

In the fast-paced digital era, the alliance between Airtel and Axis Bank brings forth an effortless way for Airtel users to secure a personal loan. The Airtel Axis Bank Personal Loan, available through the Airtel Thanks app, provides users with a swift and secure solution for their financial needs. In this guide, we will delve into the step-by-step process, required documents, and key features of this innovative financial offering.

How to Apply for Airtel Axis Bank Personal Loan

The Airtel Axis Bank Personal Loan process is designed to be user-friendly, leveraging the Airtel Thanks app. Here’s a concise step-by-step guide:

Download the Thanks app on your smartphone : Begin by downloading the Airtel Thanks app from your respective app store.

Fill in the details: Once the app is installed, input the necessary details to set up your account.

Navigate to Airtel Finance: Head to the ‘Shop’ tab within the app and click on ‘Airtel Finance.’

Select Airtel Flexi Credit: Within the financial services section, choose ‘Airtel Flexi Credit’ to initiate the personal loan application.

Follow on-screen instructions: The app will guide you through the application process. Provide the required information and follow the on-screen instructions diligently.

Receive loan approval: Upon completing all formalities, await approval. In most cases, approval is granted within minutes.

Instant disbursal: Once approved, your personal loan amount will be disbursed within 24 hours.

Airtel Axis Bank Loan Process Application & Documents Required

Understanding the Airtel Axis Bank online loan process is crucial. Once you’ve logged in to the Airtel Thanks app , and visited the Airtel Finance section under the Shop tab, here’s a detailed overview of the steps involved:

Provide consent and information: Give consent, input your PAN, and specify your employment type before clicking on ‘Continue.’

Fill the application form: Complete the application form with the required details.

Decision by Lending Partner: The lending partner reviews the application and generates an offer within 1 minute.

Final offer and additional information: The final offer is displayed based on the partner’s decision. After selection, provide any additional information requested.

OKYC completion: Complete the online Know Your Customer (OKYC) process.

Selfie submission: Submit a selfie as part of the verification process.

Set up e-mandate: Set up the electronic mandate for automated EMI deductions.

Review and sign loan agreement: Review the loan details and digitally sign the loan agreement.

Disbursal: After completing all steps, the loan amount is disbursed to your account.

Documents Required

To facilitate a smooth Airtel Axis Bank loan disbursement process, ensure you have the following documents:

• Aadhar card

Note: Document requirements may vary on a case-to-case basis.

Also Read: What are the tax benefits for Personal Loans?

Airtel Axis Bank Personal Loan Eligibility Criteria

To obtain the Airtel Axis Bank Personal Loan, below are the eligibility criteria-

• Applicant’s age needs to be between 21-60 years.
• Applicant must hold an Indian citizenship.
• Applicant’s monthly earnings must be above Rs. 15,000.
• Applicant can be either salaried or self-employed.

Loan Repayment & EMI Payment Process

To ensure seamless repayment, maintain sufficient balance in your preferred bank account. The lending partner will use the Electronic National Automated Clearing House (ENACH) for automated EMI debits.

Loan Pre-Payment Guidelines

Customers have the flexibility to reach out directly to lending partners for loan pre-payment.

Loan Cancellation Process

For loan cancellation, users can contact the lending partners directly.

What Happens if You Miss an EMI?

Missing EMI payments can have repercussions, including:

• Reminder and legal recourse: The lending partner will remind you through various channels, and legal actions may be taken.
• Additional interest: Non-payment incurs additional interest as per the loan agreement, increasing your loan balance.
• Credit score impact: Missing payments lowers your credit score, affecting future credit applications.

Penalty & Late Fee Charges

Standard charges include a processing fee (one-time fee as part of disbursal amount) and late payment fees if the EMI is overdue. Consult the Key Fact Statement (KFS) for a comprehensive understanding of applicable fees.

Axis Bank Personal Loan: Key Features

• Age Limit: 21 to 60 years
• Loan Limit: Rs. 15,000 to Rs. 500,000
• Employment Type: Salaried or self-employed
• Interest Rates: Starting at 11.75%
• Monthly Income: Rs. 15,000 or more
• Extra/Hidden Fees- There are no extra or hidden fees associated with the Airtel Axis Bank Personal Loan.

Also Read: What is the maximum and minimum tenure for a personal loan?

USPs and Benefits of Airtel Finance

Airtel Finance offers a secure and trusted digital platform for financial transactions. The key benefits include secure, 100% digital processes and personalized flexibility in terms of loan tenure, amount, and EMI options.

Applicable Offers, Cashback & Rewards

Users can avail personal loans up to Rs. 9 Lakh, with the freedom to choose the loan amount, EMI, and tenure.

In conclusion, the Airtel Axis Bank Personal Loan offers a seamless and convenient way for Airtel users to meet their financial requirements. By leveraging the Airtel Thanks app, individuals can enjoy a swift application process, transparent terms, and the backing of Axis Bank’s reputable financial services. Always review the terms and conditions and ensure timely repayments to maintain a healthy credit score and financial well-being.

You might also like

How to check CIBIL score with Aadhaar Card?

How to Check Credit Score using PAN Card?

What is Line of Credit?

• Personal Finance
• Today's Paper
• Partner Content
• Entertainment
• Social Viral
• Pro Kabaddi League

Amid surge in biz, RBI asks gold loan NBFCs to strictly comply with norms

Rbi took stock of the gold loan business of non-banking finance companies after one of them - iifl finance faced regulatory restriction for violating norms.

Image: Bloomberg

Listen to This Article

Here's why iifl finance investors may have terrible tuesday, iifl finance slumps 20% post rbi ban on sanctioning, disbursing gold loans, iifl finance jumps 10% after 2-day losses on fairfax fund's infusion plan, taking steps to meet rbi's concern: iifl fin after ban on giving gold loans, iifl finance hits lowest level since oct' 22; stock tanks 42% in 2 weeks, iifl finance raises rs 1,271 crore through rights issue to fund biz growth, rupee appreciates 4 paise to 83.47 against us dollar in early trade, public sector banks' total profit jumps 35%, crosses rs 1.4 trn in fy24, quant money managers gets rbi nod to acquire up to 9.98% in rbl bank, india's move to buy back bonds runs into rbi's need to keep tight stance.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 15 2024 | 6:06 PM IST

Explore News

• Suzlon Energy Share Price Adani Enterprises Share Price Adani Power Share Price IRFC Share Price Tata Motors Share Price Tata Steel Share Price Yes Bank Share Price Infosys Share Price SBI Share Price Tata Power Share Price
• Latest News Company News Market News India News Politics News Cricket News Personal Finance Technology News World News Industry News Education News Opinion Shows Economy News Lifestyle News Health News
• Today's Paper About Us T&C Privacy Policy Cookie Policy Disclaimer Investor Communication GST registration number List Compliance Contact Us Advertise with Us Sitemap Subscribe Careers BS Apps
• Budget 2024 Lok Sabha Election 2024 IPL 2024 Pro Kabaddi League IPL Points Table 2024

Money blog: Santander launches £175 switching offer; Burberry suffers massive profits fall

Taylor Swift is coming to the UK - and bringing her massive economic influence with her. Read this and all the latest consumer and personal finance news in the Money blog - and leave a comment or your money problem in the box below.

Wednesday 15 May 2024 15:30, UK

• Burberry suffers massive profits fall as figures 'leave a lot to be desired'
• Santander launches £175 switching offer
• Vinted forced to apologise to sellers for payment issues
• Taylor Swift to bring nearly £1bn boost to economy
• UK economy in safe hands 'whoever wins' election, top bank chief tells Sky News

Essential reads

• The 'fast food' trend hitting Michelin starred restaurants
• Basically...  What is PIP - and what could government changes mean?
• How to make sure your car passes its MOT
• Cheap Eats:  Michelin-star chef reveals his top steals in London - including an unbeatable sub sandwich
• Money Problem: My workplace wants to pay us by the minute - what can I do?
• Best of the Money blog - an archive

Ask a question or make a comment

New York has topped the list when it comes to the world's wealthiest cities, with 349,500 millionaires and 60 billionaires. 

In its latest report,  Henley & Partners  found the Big Apple's millionaire population has surged by 48% in the past decade.

And San Francisco came in second place, with 305,700 millionaires and 68 billionaires.

Meanwhile, Tokyo has seen its millionaire population declining by 5% to 298,300 people.

Joe Biden has confirmed he is going to raise the special tariff on electric vehicles coming from China. 

The standard US tariff (the amount you have to pay to get goods into a given country) on cars used to stand at 2.5% but then Donald Trump levied an extra 25% tariff on China in 2018. 

Now, Mr Biden has gone further and is quadrupling the tariff to 102.5%.

Why is the US doing this?

Our economics and date editor Ed Conway  describes the latest move as "one of the biggest issues in economics right now".

He says the move "is partly because the US is worried about competition from China".

China in the past few years has become dominant when it comes to electric cars and their manufacture of the components that go into the vehicles.

But they are not dominant when it comes to electric car imports into the US.

"The US is trying to increase its share but it is going to be difficult," Conway says

"It's only the beginning of a very big saga here and the next question is what about the EU and UK?"

Will it have an impact?

Conway says the new electric vehicle rate "won't affect many goods at all" because the "vast majority of Chinese electric vehicles are going not to America but to Europe and elsewhere", including the UK.

"We're buying loads," he says.

You can watch Conway's analysis here...

Santander has become the latest bank to offer a £175 switching offer on their current accounts, joining First Direct, which relaunched its incentive this month.

The Santander switch is open to both new and existing Santander customers and those eligible will get the payment within 90 days of starting the switch process.

To qualify you must:

• Complete the full switch within 60 days of requesting the switch process;
• Pay in at least £1,500 within 60 days of requesting the switch;
• Set up two active direct debits within 60 days;
• Continue to hold the qualifying current account on the day the payment is made.

New customers can switch to a current account online through the Santander website or in branch. 

But existing Santander customers must visit a branch to take advantage of this offer .

To qualify for the First Direct incentive you must: 

• Go through the full Current Account Switch Service (Cass) process;
• Transfer a £1,000 balance into the account;
• Switch at least two regular payments;
• Use their debit card at least five times within 30 days of the account opening.

 The chairman and chief executive of JPMorgan has told Sky News he is confident the UK economy will be in safe hands "whoever wins" the election.

Jamie Dimon told Sky's Wilfred Frost that he had met with both Rishi Sunak and Sir Keir Starmer and liked that they were both "pro-business".

"Growing the economy is a good thing, and that should benefit everybody," he said.

"Everyone I heard in the Labour and Conservative government are talking about growing the economy, technology, research and development, simplifying regulations and making it easier for people to start and grow businesses.

"Those policies work."

Asked if he was confident the UK economy would be in safe hands no matter who won the election, he replied: "Yeah, I certainly hope so, and we would help whoever wins."

Mr Dimon also said the world "had been through a difficult and weird time".

On the UK specifically, he said: "It's a great country and partner and friend of America."

He said he was "optimistic" about the UK, and said the government should keep investing in "education, work skills and technology".

Here's Mr Dimon's interview in full:

By James Sillars , business news reporter 

A solid start to the day for the FTSE 100 despite one of its well known constituents posting a big drop in profits.

The index rose by 0.5% in early dealing to stand at 8,469.

Leading the gainers were industrial and mining stocks. 

Among the big names reporting its progress this morning was Burberry.

Its annual results to the end of March showed a 34% fall in operating profits as demand for luxury slowed in the second half.

The company's chief executive, who is in the process of taking the firm more upmarket, said he expected the current year to remain challenging but with a pick-up in sales weighted to the final six months.

Burberry, nevertheless, awarded a 61p per share dividend which was flat on the previous financial year.

Its shares were down by more than 3%.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: "Burberry's latest figures leave a lot to be desired, amid slowing demand for luxury... Not only does this highlight the extent of consumer caution across the globe, it also puts a spotlight on some Burberry-specific issues. 

"Refreshing the store estate is all well and good, but only if those costs and charges can be recouped by selling the clothes they hold. While Burberry's brand repositioning has come a long way, it’s not yet sharp enough to slice through to the core of the even more resilient end of the luxury market."

She added: "Slowing trends are being seen across the board in the sector, so these weaker results aren't a total bolt from the blue. The question now will be how quickly demand picks up, and that of course is in the hands of the economy... Burberry faces challenges, but it remains a strong heritage brand, with a lot of the right strategic ideas."

Taylor Swift's Eras Tour has been predicted to provide a £997m boost to the UK economy. 

Fans are expected to fork out an average of £848 to see the star on one of her 15 tour dates. 

That's according to data from Barclays, which has added up the total spending of the Swifties lucky enough to get a ticket.

After tickets, fans will spend the most on accommodation at around £121, with other notable costs including £111 on travel and £56 on an outfit. 

Those visiting London, Liverpool, Edinburgh and Cardiff for the concert are expected to spend £79 each on official merchandise, as well as £59 on a pre-show meal. 

The average amount spent on an Eras Tour ticket is £206, yet for 14% of fans, including those who purchased VIP ticket packages with premium seating and exclusive merchandise, the total exceeds £400.

Dr Peter Brooks, chief behavioural scientist at Barclays, said fans of "cultural icons" like Swift have a "powerful" spending power. 

"Whoever came up with the phrase 'money can't buy happiness' clearly wasn't a Swiftie," he said. 

"When it comes to cultural icons like Taylor Swift - like we saw with Elvis and Beatlemania in the 50s and 60s - supporters have such a strong connection to the artist and to the rest of the fandom that the desire to spend becomes even more powerful.

"For non-fans, £848 may seem like an enormous amount to splash out on a concert - but for Eras Tour ticketholders, every pound they spend is an investment in the memories they'll create."

Every Wednesday we get Michelin chefs to pick their favourite Cheap Eats where they live and when they cook at home. This week we speak to Andy Beynon, chef patron of Behind in London - which was awarded a Michelin star after being open for just 20 days. 

Hi  Andy, c an you tell us your favourite places in London where you can get a meal for two for less than £40?

I love Lahore Kebab House in Whitechapel. It's family run and I've been going there for about 15 years. I used to go with my dad - we'd get a couple of lagers from the shop next door, then tuck into lamb chops, tarka daal, the Peshwari naan, which is always cooked fresh on the tandoor, and all the dips on the menu. 

You can't beat a "That Spicy D" from Dom's Subs . There's just something about that burnt chilli mayo and schiacciata piccante. It's my favourite lunch to have on the go, and totally worth the mess. 

Umut 2000 in Dalston is my go-to for a kebab fix. They also do this amazing chargrilled lamb mince on a bed of tomato sauce with yoghurt and clarified butter. So good.

What's your go-to cheap meal at home?

I don't cook at home often, but when I do it's usually a big pot of spicy daal. It's super easy to make and keeps well in the fridge or the freezer. My secret ingredient for making the perfect daal is condensed milk - simply add a spoonful at the end to balance all of the spice.

We've spoken to lots of top chefs and bloggers - check out their cheap eats from around the country here...

Vinted has apologised for a tech issue that has left its sellers facing long delays to withdraw their cash. 

Users have been complaining over the past few weeks about their balance not updating quickly enough after being told they had been paid... 

We reached out to platform about the issue - it said its payment service provider Mangopay was aware of the problem and was "in the process of resolving" affected cases. 

It said a "very small number" of Vinted members have experienced an issue with funds being received by banks after payouts had been initiated. 

"The large majority of payouts are successfully completed every day," it added. 

"Vinted is in constant contact with Mangopay to resolve any cases brought to our attention, however, there may be a further delay as a result, for which we apologise.

"Many cases have already been resolved and we are working as quickly as we can to help resolve the remaining cases." 

Mangopay processes and stores transactions made through Vinted and then pays the cash into users' bank accounts. 

It told us part of its legal obligations require it to verify users' identities for the payment process to be successful.

"Our team works to carry out this verification process as quickly as possible so that users can continue using their accounts as normal," it said. 

"Marketplaces and platforms often have complex payment needs and as a regulated financial institution, we take our compliance, due diligence processes and regulatory obligations very seriously." 

However, it added that from "time to time" the process can be delayed, which means it needs to withhold funds for a certain amount of time, or it "may experience issues with the payout process".

"We apologise for any delays in receiving payments caused as a result of this and are working with Vinted to resolve each case as quickly as possible," it added. 

The Duke and Duchess of Sussex's Archewell Foundation has been labelled "delinquent" in the US for failing to submit annual records.

A letter was sent to the charity on 3 May by by California's Registry of Charities and Fundraisers, saying it has been "listed as delinquent" for "failing to submit required annual report(s) and/or renewal fees".

The letter said an organisation listed as delinquent is banned from "soliciting or disbursing charitable funds" and its registration may be "suspended or revoked".

It is understood that a physical cheque was sent by Archewell Foundation but not received, and a new one has been sent to resolve the issue.

It is believed the charity was only made aware of this when the delinquency notice was published.

Read more on this story below...

Shares of US video game retailer GameStop have soared again today, fuelled by the return of online influencer "Roaring Kitty" to social media.

Real name Keith Gill, the influencer's first online post caused shares to jump yesterday, with another surge reported today.

The retailer's shares rallied 132% in pre-market trading before falling back to about 80% up as US markets opened. 

Mr Gill shared a meme and more than 10 clips from movies including The Avengers and Tombstone. Though the posts didn't mention any company names, GameStop and US cinema chain AMC were the most-traded stocks by investors yesterday and today, according to data from JP Morgan.

He is credited with helping to fuel the "meme stock" craze during the COVID pandemic, which saw GameStop shares rise more than 1,000%. They later collapsed as interest faded.

Be the first to get Breaking News

Install the Sky News app for free