Business plan template

What a business plan is actually for

A business plan does two jobs. It forces you to think through how your company makes money, and it gives a lender, investor or new hire a single document that explains the business without you in the room. For a short-term finance application it is the context behind the numbers — it shows that the borrowing has a purpose and a repayment path.

Keep it honest and specific. A plan stuffed with optimistic projections and no assumptions reads as weaker than a tighter plan that shows you understand your costs, your margins and your risks. Write for a sceptical reader who has seen hundreds of plans and wants to know one thing: does this stack up?

The eight sections to include

Copy this structure as your headings and write one to three paragraphs under each:

1. Executive summary — one page written last; the whole plan in brief.
2. The business — what you sell, who buys it, your legal structure and history.
3. Market and customers — size, demand, the problem you solve, key segments.
4. Competition and positioning — who else does this and why customers choose you.
5. Operations — how you deliver: suppliers, premises, staff, systems.
6. Management team — who runs it and the relevant experience.
7. Financials — historic accounts, a 12-month forecast, and key assumptions.
8. Funding and use of funds — what you need, why, and how it gets repaid.

Writing the executive summary

The executive summary is the only section many readers finish, so make it work hard. In four short paragraphs cover: what the company does and the stage it is at; the market opportunity in a sentence; the financial headline (turnover, gross margin, profit or growth rate); and the ask — how much funding, what for, and the repayment logic. Write it last, once the rest of the plan has settled, then cut it by a third. If a reader can grasp your business and your request in ninety seconds, you have done it well.

The financial section that lenders read closely

This is where most plans are won or lost. Include the last two years of filed accounts (or management accounts if you are younger), a month-by-month cash-flow forecast for the year ahead, and a short profit & loss projection. Crucially, state your assumptions in plain English: expected sales growth, average debtor days, gross margin, and the seasonality of your trade.

Build the supporting numbers in our 12-month budget template and a profit & loss template, then summarise here. A lender wants to see that any new repayment fits comfortably inside your monthly cash position.

Funding and use of funds

Be precise about the money. State the amount, the form of finance, and exactly where it goes — stock for a confirmed order, equipment that lifts capacity, or a cash buffer to bridge a known seasonal dip. Vague requests ("working capital and growth") read as weaker than a costed list.

If you are considering a short-term facility, explain how the spend generates the return that repays it. Credicorp lends to UK limited companies for working capital with no personal guarantee — the obligation sits with the company. You can read more on business loans and the revolving Credicorp Flex facility.

Keep it living, not laminated

A plan written once and filed is worth little. Revisit it quarterly: compare actual results against your forecast, update the assumptions that turned out wrong, and adjust the next quarter. This habit is what turns a funding document into a management tool. When you next apply for finance, a plan that visibly tracks reality is far more persuasive than a polished forecast that never met a real month. Pair it with a loan readiness checklist before you submit.