Business Plans 101: Why They Matter to Lenders
# Business Plans 101: Why They Matter to Lenders A comprehensive business plan serves as your financial roadmap and credibility statement when approaching lenders. Banks and financial institutions use these documents to assess risk, understand your business model, and determine if you represent a sound investment. A well-crafted plan demonstrates your market understanding, financial projections, and repayment strategy—essential elements lenders evaluate before extending capital.