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How to Write a Successful Business Plan for a Loan

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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.

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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

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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...

Loan Officer Business Plan Template

Written by Dave Lavinsky

Loan Officer Business Plan

You’ve come to the right place to create your Loan Officer business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Loan Officer business.

Below is a loan officer business plan template to help you create each section of your Loan Officer business plan.

Executive Summary

Business overview.

Montgomery Mortgage Loan Company is a startup mortgage loan company based in Newton, Massachusetts. The company is founded by Trent Hawthorn, a loan officer who has successfully completed over seven hundred loan packages for individuals during the past fifteen years while working for a large mortgage loan company in nearby Boston, Massachusetts.

Montgomery Mortgage Loan Company will provide loan officers experienced in the full spectrum of lending and mortgage coaching services for individuals or families. Montgomery Mortgage Loan Company will become known for their friendly and experienced loan officers, and also for the results-driven attitudes and affirming responsiveness to applicants who are served by Montgomery Mortgage Loan Company. Montgomery Mortgage Loan Company will project at least 1M in lending business within the first year.

Product Offering

The following are the services that Montgomery Mortgage Loan Company loan officers will provide:

• Conduct initial client meetings to determine lending needs, including refinancing existing loans and first-time mortgages
• Review customer applications; prepares and presents lending packages based on the client specifications
• Assist clients with completion of mortgage applications
• Review applications, research credit histories, report, assess capacities to pay and default risks
• Officers will view or visit properties for real estate purchase or refinance
• Develop and maintain contact with potential clients: realtors, developers, builders and banks or other financial institutions

Customer Focus

Montgomery Mortgage Loan Company will target individuals within the greater Boston region, including nearby townships or smaller areas near Newton.

Management Team

Montgomery Mortgage Loan Company will be owned and operated by Trent Hawthorn, a loan officer who has successfully completed over 450 loan packages for individuals during the past fifteen years while working for a large mortgage loan company in nearby Boston, Massachusetts. He has recruited two key management employees from other loan companies in the area.

Clay Singleton is a mortgage loan officer with ten years of experience in a large, nationally-recognized mortgage loan company. While with his former employer, Clay instituted a streamlined process of analyzing credit worthiness, resulting in a 28% increase in speed and, thereby, a significant reduction in package preparation time. Clay successfully completed over 300 loan packages for individuals and families during the time he was employed by the former mortgage company.

Success Factors

Montgomery Mortgage Loan Company will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly qualified team of Montgomery Mortgage Loan Company loan officers
• Comprehensive menu of services provided by loan officers who actively work to best represent clients in the lending process–every time on time.
• Montgomery Mortgage Loan Company offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Financial Highlights

Montgomery Mortgage Loan Company is seeking $200,000 in debt financing to launch its Montgomery Mortgage Loan Company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the social media campaign and website development. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the financial projections for Montgomery Mortgage Loan Company.

Company Overview

Who is montgomery mortgage loan company.

Montgomery Mortgage Loan Company is a newly established full-service mortgage loan company in Newton, Massachusetts. Montgomery Mortgage Loan Company will be the most reliable, cost-effective, and efficient choice for individuals in greater Boston and the surrounding communities. Montgomery Mortgage Loan Company will provide a comprehensive menu of mortgage loan officer services for any individual customer to utilize. Their full-service approach includes a comprehensive set of loan package services, application oversight and completion of mortgage loans, refinancing or first-time mortgage loan needs.

  Montgomery Mortgage Loan Company loan officers will be able to manage all aspects of the mortgage application process, including refinancing and servicing of loans due to the superior customer service offered to individuals and families who seek mortgage loans in a process that can often be daunting and unfamiliar. The team of loan officer professionals are highly qualified and well-experienced in evaluating and processing loan applications and, in particular, assisting individuals through the various mortgage types and options, as well as the thorny questions found within applications and additional requirements of applicants. Montgomery Mortgage Loan Company removes all headaches and issues surrounding mortgages on behalf of their customers and ensures all issues are taken care off expeditiously, while delivering the best customer service.

Montgomery Mortgage Loan Company History

Since incorporation, Montgomery Mortgage Loan Company has achieved the following milestones:

• Registered Montgomery Mortgage Loan Company as a C-corporation to transact business in the state of Massachusetts.
• Has completed the training required for the Nationwide Mortgage Licensing System and Registry (NMLS) and is now licensed to operate in the U.S.
• Has negotiated office space in a corporate office building to set up the services of a mortgage loan company in the 10,000 square foot location.
• Reached out to numerous contacts to include Montgomery Mortgage Loan Company in the databases of available, highly-experienced loan officers.
• Began recruiting a staff of Montgomery Mortgage Loan Company and office personnel to assist and support the mortgage loan officers.

Montgomery Mortgage Loan Company Services

The following will be the services Montgomery Mortgage Loan Company will provide:

• Friendly and highly-experienced loan officers will conduct initial client meetings to determine lending needs, including refinancing existing loans or first-time mortgages
• Confidential and private review of customer applications, customer protections in place to avoid identity theft, and trust-building processes that ensure the customers are comfortable with the overall experience.
• Highly-experienced loan officer conducts application preparation and presents lending packages based on the client specifications
• Review applications, conducts research, may approve loans
• Loan officer views or visits properties for real estate purchase or refinance
• Loan officers develop and maintain contact with potential networking affiliations or collaborations: realtors, developers, builders and banks or other financial institutions

Industry Analysis

The mortgage industry is expected to grow over 7% during the next five years to over $423M. This stable growth will be driven by economic conditions that lead to increased homebuyer or homeowner trust, resulting in refinancing and first-time mortgages, in addition to traditional mortgages for homebuyers. Costs may be reduced in the future, depending on supply chain issues. It is probable that, as supply chain issues are solved and more materials become available, the costs for a loan or mortgage package will be correspondingly reduced. The cost of living expenses for the median of the population in middle-to-upper economic ranges has been steady and will likely continue to be, which stabilizes and supports the mortgage industry growth. As various materials are adapted to green or environmental standards within state laws, construction supplies and new home amenities will also change, reducing the costs of homeownership, which will invite a larger pool of mortgage applicants in the process.

Customer Analysis

Demographic profile of target market.

Montgomery Mortgage Loan Company will target those individuals and corporations in the greater region of Boston, Massachusetts in need of a mortgage or refinance package. They will also target first-time homebuyers with a strategic effort to take university graduates and other young adults into condominiums and other attached home scenarios as first-time homebuyers.

Customer Segmentation

Montgomery Mortgage Loan Company will primarily target the following customer profiles:

• Individuals and families who are refinancing or applying for a new mortgage
• First-time homebuyers who have never applied for a mortgage or large loan
• Corporations with affiliation or collaboration potential
• Community, civic or governmental agencies with specific loan funding needs

Competitive Analysis

Direct and indirect competitors.

Montgomery Mortgage Loan Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

TRS Mortgage Services

TRS Mortgage Services is a mortgage loan company based in Newton, Massachusetts. It is a direct competitor to the Montgomery Mortgage Loan Company, with the primary focus on first-time homebuyers who may have little to no knowledge of the homebuying process.

TRS Mortgage Services is a C-corporation and is owned by a family group with ten siblings and cousins included on the corporate register. It has 20 employees and advertises heavily to the young adult demographic, targeting under-represented nationalities within the American home buyer statistical experience. Their motto is, “Let Us Find Your First and Last Home,” and the target audience is directed toward “security” and “safety” for homeowners in the marketing strategies applied.

Silver Estates Home Loans

Silver Estates Home Loans is a direct competitor to the Montgomery Mortgage Loan Company. The company has segmented one portion of the mortgage loan industry, however, within the mobile or manufactured home mortgage loan services arena. Manufactured or mobile homes are not typically included in federal or state buying incentive programs due to the rent payments owed on a monthly basis for the land on which the manufactured homes sit. While this fact invalidates much of the mortgage loan market, Silver Estates Home Loans and others focus on meeting that niche target market and excelling within it.

Silver Estates Home Loans is an S-corporation owned by Connie Lyn and Heidi Matthews, who started the home loan company in 2015 as a result of being unable to secure a loan for their own purposes in purchasing a mobile home. Silver Estates Home Loans now services “kit” or pre-manufactured homes, as well, whether on land that is owned or leased.

Sunnyside Home Loans

Sunnyside Home Loans is a direct competitor and is owned by Hank and Mae Marsten, who formed a Limited Liability Company as the legal entity under which it operates. Sunnyside Home Loans has targeted home refinancing, first-time buyer mortgages and second mortgages for homeowners within the Boston region. A target area is that of seniors who need second mortgages for homes with no mortgages and reverse mortgage loans for seniors who need liquid assets for living expenses. Sunnyside Home Loans collaborates with federal senior agencies and the American Association of Retired Persons (AARP) to provide mortgage application education seminars and other support systems so seniors can better understand mortgage processes. They also provide application support and expanded communication for seniors in need of comprehensive assistance.

Competitive Advantage

Montgomery Mortgage Loan Company will be able to offer the following advantages over their competition:

• Confidential and private review by loan officers of customer applications, customer protections in place to avoid identity theft, and trust-building processes that ensure the customers are comfortable with the process.
• Highly-experienced mortgage loan officers will conduct application preparation and present lending packages based on the client specification
• Loan officers will assist clients with completion of mortgage applications
• Loan officers will view or visit properties for real estate purchase or refinance
• Loan officers will develop and maintain contact with potential networking affiliations or collaborations: realtors, developers, builders and banks or other financial institutions

Loan Officer Marketing Plan

Brand & value proposition.

Montgomery Mortgage Loan Company will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled loan officers who are able to provide comprehensive assistance to applicants in the home loan market sector.
• Unbeatable service in pricing for its clients. Montgomery Mortgage Loan Company loan officers will offer the lowest prices and percentage rates for the services offered and the ancillary costs attached to the loan processes.

Promotions Strategy

The promotions strategy for Montgomery Mortgage Loan Company is as follows:

Referral Marketing

Trent Hawthorn has built up an extensive list of contacts over the years by providing exceptional service and expertise to his clients. They have communicated to Trent that they kept returning for all their home mortgage needs because they were happy with the services Trent was providing as a loan officer. Once Trent advised them he was leaving to open his own mortgage loan business, they signaled their commitment to follow him to his new company and help spread the word of the Montgomery Mortgage Loan Company. This audience will be a great source of referral marketing.

Professional Associations and Networking

The pivotal area of networking will be attended to by both Trent Hawthorn and Clay Singleton, who together have over 25 years of mortgage loan officer experience. The potential for networking or joining association memberships is found in the affiliations that make sense for mortgage loan officers: real estate brokers, commercial brokers, mortgage companies, and banks or other financial institutions. These associations and networking opportunities pave the way for business, both in the immediate and long-term future.

Social Media Marketing

The oversight of social media marketing will be handled on a short-term basis by a part-time social media manager. This will include posting on social media, adding video reels, podcasts, images and other announcements that intrigue potential customers to contact the firm. The entities involved will be converted to followers on social media, who will continue to follow if material is relevant, timely and well-executed. Young adults are the largest target for this medium and they are also first-time buyers who will be researching mortgage loans and loan officers.

Website/SEO Marketing

Montgomery Mortgage Loan Company will utilize their short-term social media marketing manager who oversees the social platforms to also design their website. The website will be well organized, informative, and list all the services that the Montgomery Mortgage Loan Company is able to provide. The website will also list their contact information and list their available interest rates and other salient information for homebuyers who are watching economic indicators.

The social media manager will also manage the website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine, “Boston mortgage loan company” or “mortgage loan company near me”, Montgomery Mortgage Loan Company will be listed at the top of the search results.

The pricing of Montgomery Mortgage Loan Company will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Montgomery Mortgage Loan Company. Operation Functions:

• Trent Hawthorn will be the Owner and President of the company. He will oversee all staff and manage client relations. Trent has recruited the following staff:
• Clay Singleton – General Manager and Senior Loan Officer who will oversee the loan officers and handle human resources onboarding and other day-to-day operations.
• Stuart Asbury – Loan Officer, who will advise and assist corporations with mortgage loan packages.
• Elizabeth Stanton – Loan Officer, who will advise and assist homebuyers in loan packages and application processes.

Milestones:

Montgomery Mortgage Loan Company will have the following milestones complete in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for the Montgomery Mortgage Loan Company
• <6/1/202X - Begin networking at corporate levels
• 6/15/202X – Begin networking at mortgage industry events
• 6/22/202X – Begin moving into Montgomery Mortgage Loan Company office
• 7/1/202X – Montgomery Mortgage Loan Company opens its office for business

Montgomery Mortgage Loan Company will be owned and operated by Trent Hawthorn, a mortgage loan officer who has successfully completed over 450 loan packages for individuals during the past fifteen years while working for a large mortgage loan company in nearby Boston, Massachusetts. He has recruited two key management employees from other loan companies in the area.

Financial Plan

Key revenue & costs.

The revenue drivers for Montgomery Mortgage Loan Company are the loan origination fees and associated costs charged to the customers for their services. .

The cost drivers will be the overhead costs required in order to staff the Montgomery Mortgage Loan Company. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Montgomery Mortgage Loan Company is seeking $200,000 in debt financing to launch its mortgage loan business. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the marketing campaign and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Applications Processed and Closed Per Month: 90
• Average Costs per Month: $65,000
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, loan officer business plan faqs, what is a loan officer business plan.

A loan officer business plan is a plan to start and/or grow your loan officer business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Loan Officer business plan using our Loan Officer Business Plan Template here .

What are the Main Types of Loan Officer Businesses?

There are a number of different kinds of loan officer businesses , some examples include: Commercial Loan Officer, Consumer Loan Officer, and Mortgage Loan Officer.

How Do You Get Funding for Your Loan Officer Business Plan?

Loan Officer business plans  are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Loan Officer Business?

Starting a loan officer business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Loan Officer Business Plan - The first step in starting a business is to create a detailed loan officer business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your loan officer business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your loan officer business is in compliance with local laws.

3. Register Your Loan Officer Business - Once you have chosen a legal structure, the next step is to register your loan officer business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your loan officer business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Loan Officer Equipment & Supplies - In order to start your loan officer business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your loan officer business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

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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 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

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Loan Officer Business Plan Guide

JUL.05, 2023

1. What are loan officers’ services?

Loan officers serve both home buyers and busine­sses. When e­valuating clients’ eligibility for loans, they care­fully assess their credit history and financial status. Additionally, the­y offer expert guidance­ in selecting mortgage products that cate­r to the unique nee­ds of each client. Loan officers collaborate­ with lenders, streamlining the application process, negotiating terms, and facilitating closing.

2. Executive Summary

Why do you need a business plan for a loan officer business.

A business plan holds imme­nse importance for the success of a Loan Officer business. A comprehe­nsive guide on crafting a loan officer business plan acts as a roadmap leading to operational and financial success for the Loan Officer business. It should identify not only milestones but also the processes and strategies needed to achieve those goals.

The business plan should outline the company’s overall mission and objectives, its financials (including a budget and a pro forma income statement), market analysis, organizational structure, and customer acquisition strategies.

How to write an executive summary for a Loan officer business plan?

The e­xecutive summary of a loan officer business plan worksheet provides a compre­hensive overvie­w of the entire plan. The provide­d sentence lists various compone­nts of a summary, including the mission, goals, products and services, financial proje­ctions, and competitive analysis. It also mentions that the qualifications and experience of the loan officer are highlighted.

The e­xecutive summary should prioritize the loan officer’s objectives and strategies for acquiring and fulfilling client reque­sts. It should outline how the loan officer plans to reach these goals effectively while explaining the specific techniques they will utilize.

The e­xecutive summary of the comme­rcial loan officer business plan template­ should provide a concise overvie­w of the products and services offered by the loan officer. Additionally, it should include anticipated financial projections and competitive­ analysis. This section aims to present an outline­ of available loans, associated fee­s, charges, and estimated total re­venue for the loan office­r’s business.

The e­xecutive summary should provide a concise­ overview of the loan office­r’s qualifications and experience. This section briefly highlights the loan office­r’s education, professional certifications, and pe­rtinent industry expertise­ within lending.

3. Company Overview

History of loan officer company.

Loan Officer Company was founded in 2021 to become a top-tier mortgage loan provider. The company offers specialized mortgage loan services to its customers. These services are provide­d through a team of experie­nced and knowledgeable­ loan officers.

Moreover, our organization takes great pride in being a me­mber of estee­med professional associations such as the National Association of Mortgage­ Professionals , the Mortgage Banke­rs Association of America, and the National Reve­rse Mortgage Lende­rs Association.

Our range of loan products e­ncompasses conventional loans, governme­nt-backed loans, jumbo loans, and refinancing. Loan officers unde­rgo ongoing training and must pass a stringent certification process to guarantee exceptional customer service quality.

The company’s main obje­ctive is to provide personalize­d creditworthy loans to every custome­r. Transparency and fairness are our core­ principles, ensuring that each custome­r receives the­ loan that suits their unique circumstances. Additionally, we­ prioritize clarity and understanding by guiding customers through the­ entire loan process from start to finish.

4. Services and pricing

• Conventional Loans: Fixed or adjustable rate mortgages as low as 3.875%, Low or no down payments, Flexible qualification criteria
• Government-Backed Loans: VA, FHA, and USDA loans with competitive rates and flexible qualifications
• Jumbo Loans: Loan limits up to $3.5 million with competitive rates and flexible qualifications
• Refinancing: Lower rates, cash-out options, and the ability to consolidate debt
• Mortgage Consultations: Comprehensive assessment of your financial situation and personalized advice
• Loan Packaging: Comprehensive loan packaging and presentation services to ensure competitive offers
• Loan Servicing: Professional loan servicing that includes payment processing, collections, and customer service

5. Customer Analysis

Customer segmentation.

The customer base for the loan officer business plan example can be segmented as follows:

• Homeowners: This segment comprises existing homeowners looking to obtain or refinance a mortgage loan. They are likely between the ages of 35-55 and have a higher net worth than the average consumer.
• First-time Home Buyers: This segment consists mostly of younger people who are first becoming homeowners. They may have lower credit scores or more limited finances and require more assistance in obtaining a mortgage loan.
• Real Estate Investors: This segment typically consists of experienced investors or business-minded individuals looking to purchase property as an income-generating tool.
• Small Business Owners: Small business owners may be interested in obtaining a commercial loan to purchase a building or expand their business operations.
• Homeowners with Equity: This segment comprises existing homeowners looking to access the built-up equity in their homes to finance a large purchase or investment.

6. SWOT Analysis

• The knowledgeable and experienced loan officer
• Access to data and analytics to better determine loanworthiness
• Established relationships with lenders
• Long-term relationships with customers

Weaknesses:

• Lack of resources, such as access to capital or the ability to hire new loan officers
• Lack of technology to efficiently process and monitor loan applications

Opportunities:

• Expansion into new geographic areas
• Leveraging new technology to increase efficiency and effectiveness in the loan process
• Establishing relationships with new lenders and financial service providers
• Increasing competition in the loan officer business
• Strained lending regulations that may limit loan products or terms
• Changing economic environment and interest rate markets that may inhibit borrower demand

7. Marketing Analysis

The Mortage Broker Business Plan industry is highly competitive, dominated by traditional banks and large financial institutions.

Competitors

The primary competitors of our Payday Loan officer services are other loan officers, mortgage brokers, banks, credit unions, mortgage lenders, and real estate agents. They offer services similar to our company, such as home loans, refinancing options, loan terms and conditions, etc.

Market trends

Recent market trends in the loan officer industry have seen an increase in demand and competition as the US housing market has continued to boom.

Competitive Advantage (USPs)

Our commitment lie­s in providing a comprehensive loan se­rvice, giving us a competitive e­dge. We dedicate­ ourselves to understanding the unique needs and financial goals of each client, allowing us to offer personalize­d loan advice and tailored solutions. Rather than se­ttling for standard options, we go the extra mile­ to ensure our clients receive the absolute­ best choices available.

8. Marketing Plan

Create a commercial loan officer business plan marketing plan that includes a mix of promotional strategies and goals, an organizational structure for tracking and measuring effectiveness, and a budget.

Promotions Strategy

The promotional strategy for a loan officer business plan involves several activities, including direct mail advertising, personal contacts and referrals, print media, and social media.

• Direct Mail Advertising: Direct mailers are a great way to reach potential clients and remind existing clients of your services. When preparing a direct mailer, it is important to tailor the message and design to the target market.
• Print Media: Print media provides an effective way to showcase the qualifications of a loan officer and the services provided.
• Social Media: Social media pre­sents a powerful opportunity for businesse­s to connect with potential clients.

9. Management Team

Organizational structure.

An organizational structure for a loan officer 1-year business plan includes the following components:

• Accounting and Financial Support Team
• Loan Processing Team
• Customer Service Team
• Loan Administration Team
• Compliance and Regulatory Team
• Sales and Marketing Team

10. Financial Plan

Startup costs.

Developing a loan officer Finance Business Plan requires an initial investment of capital. These costs may be broken down into the following categories:

• Technology and Equipment: $2,500
• Legal and Regulatory Fees: $2,500
• Insurance: $2,500
• Licensing: $1,000
• Office Expenses: $2,000
• Marketing and Advertising: $1,000

Total Startup Costs: $11,000

Financial Projections

Assuming a loan officer is loaned out at an average of $250 per hour yearly, the following financial projections may be made:

• Year 1: $60,000
• Year 2: $75,000
• Year 3: $90,000
• Year 1: $25,000
• Year 2: $30,000
• Year 3: $35,000
• Year 1: $35,000
• Year 2: $45,000
• Year 3: $55,000

Funding Ask

Initial funding for the loan officer business plan can be obtained through a variety of sources, including personal savings, friends and family, business loans, or venture capital. Depending on the sources, the owner may need to provide collateral or a personal guarantee.

11. Accelerate Your Loan Officer Business Goals with OGS Capital

Are you a Loan Officer looking to get ahead?

OGS Capital has the e­xpertise to accele­rate your business growth. Our team comprise­s experience­d financial and marketing professionals with exte­nsive knowledge in the­ mortgage and banking sector. They are­ dedicated to supporting Loan Officers, like­ yourself, in achieving their busine­ss goals.

The OGS Capital te­am of advisors possesses exte­nsive experie­nce and expertise­ in the realms of business strate­gy and management. They have­ collaborated with a diverse array of companie­s, ranging from fledgling startups to reputable Fortune­ 500 corporations.

Our strategy plans are­ customized to align with the unique goals and obje­ctives of your loan office business. The­y provide valuable insights and guidance for e­ffectively targeting niche­ markets and reaching your desire­d audience. By employing data-drive­n methods, our plans prioritize actionable insights for your marke­ting campaigns, optimize spending, and drive sale­s and revenue growth in a cost-e­fficient manner.

Whether you’re looking for an effective growth strategy or a comprehensive roadmap to success, the experienced consultants at OGS Capital are on hand to provide the knowledge and expertise to turn your vision into reality.

Are you looking for e­xpert guidance on business growth? Re­ach out to OGS Capital today to obtain your personalized roadmap towards achieving your goals.

Q. What is the easiest way to finalize a loan officer business plan?

The easiest way to finalize a loan officer business plan is to utilize online resources or templates to customize it to meet your needs. Templates are typically available online for free or at nominal costs and often include sections like a mission statement, financial goals, target audience, risk assessment, and more. Additionally, consider seeking professional help from a financial advisor who can provide additional guidance and advice.

Q. Where can I download the loan officer business plan in PDF format?

You can download a Loan Officer Business Plan Template in PDF format from websites such as SCORE, HubSpot, OGS Capital, and BizPlanBuilder.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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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.

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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

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How To Write an SBA Business Plan [+Free Template]

Published June 13, 2023

Published Jun 13, 2023

REVIEWED BY: Tricia Jones

WRITTEN BY: Andrew Wan

This article is part of a larger series on Business Financing .

• 1. Write the Company Description
• 2. Identify Organization & Management
• 3. Specify the Market Analysis
• 4. Write Descriptions of the Products or Services
• 5. Indicate the Marketing & Sales Strategy
• 6. List Financial Data & Projections
• 7. Write the Financing Request
• 8. Fill In the Appendix & Supplemental Information
• 9. Complete the Executive Summary
• Additional Resources

Bottom Line

If you’re applying for a loan from the Small Business Administration (SBA), there’s a good chance that you’ll need a business plan to get approved. An SBA business plan provides a summary of the various aspects of your business, and we will guide you through the process of creating it, from writing your company description and marketing and sales strategies to completing financial data and projections and your executive summary.

Although there is no standard format, and to help you ensure nothing is overlooked, you can use our SBA business plan template to ensure you cover the most important areas of your company. A well-prepared business plan can improve your chances of getting an SBA loan.

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Step 1: write the company description.

This section should contain information about the purpose of your business. It should include a description of the problem or challenge your product or service aims to solve and what types of individuals or organizations will benefit.

A strong company description should also address the following questions:

• Why does your company exist?
• What problems does your business aim to address?
• What prompted you to start your business?
• What organizations or individuals will benefit from your company’s product or service?
• What makes your company different from others?
• What competitive advantages does your business offer?
• What would a successful product launch look like?
• Does your company have strategic partnerships with other vendors?

Step 2: Identify Organization & Management

Details about the legal and tax structure of your business should be included in this section. It can also be helpful to include an organizational chart of your company. You can include information about each team member’s background and experience and how it is relevant to your company:

• Highlight what business structure you have selected and why. Examples commonly include a sole proprietorship, limited liability company (LLC), partnership, S corporation (S-corp), and C corporation (C-corp)
• Include an organizational chart showing which team members are responsible for the various aspects of your company
• You can include resumes for members of your leadership team highlighting their experience and background

Step 3: Specify the Market Analysis

The market analysis section of your SBA business plan should look at who your competitors will be. Look at what they are doing well, what their weaknesses are, and how your company compares.

The SBA’s market analysis page contains information on how you can approach this. Questions you should also consider addressing should include:

• Who are the major competitors in the market?
• What are competitors doing well and are there areas for improvement?
• How does your company compare to the top competitors?
• How has the product or service evolved over time?
• Are there any trends for supply and demand throughout the year?
• What can your company do to stand apart from the top competitors?

Step 4: Write Descriptions of the Products or Services

In this section, you should detail the product or service offered by your business. You should explain what it does, how it helps your customers, and its expected lifecycle. You can also include things like any expected research and development costs, intellectual property concerns such as patents, what the lifecycle of your product looks like, and what is needed to manufacture or assemble it.

Here are some things to consider as you are working on this section:

• Description of what your product or service does
• How your product or service works
• How your customers will benefit from your product or service
• Illustration of the typical lifecycle
• Any patents or intellectual property you or your competitors have
• Pricing structure
• Plans for research and development
• Discuss plans for handling intellectual property, copyright, and patent filings

Step 5: Indicate the Marketing & Sales Strategy

Details of your marketing and sales strategy will be highly dependent on your business. It’s also something that may evolve and change over time in response to things like the overall economic environment, release of competitor’s products or services, and changes in pricing.

With that being said, here is a list of some items that should be addressed:

• Who is your target audience?
• How will you attract customers?
• How and where will sales be made?
• If applicable, what will the sales process look like?
• Where will you market and advertise your product or service?
• How does your marketing strategy compare to other companies in the industry?
• How much should you spend on marketing?
• What is the expected return on investment for marketing?
• Do you have any data showing the effect of marketing?

Step 6: List Financial Data & Projections

If your business has been running, you should include information about its finances. This should include all streams of revenue and expenses. Data for financial projections should also be included, along with a description of the methodology you used to reach those conclusions.

If available, you should be prepared to provide the following financial documents for at least the last three years to five years:

• Personal and business tax returns
• Balance sheets
• Profit and loss (P&L) statements
• Cash flow statements
• Hard and soft collateral owned by your business
• Business bank statements for the last six to 12 months

Financial projections should include enough data to offer some confidence that your business is viable and will succeed. It’s recommended that you provide monthly projections looking forward at least three years, with annual projections for years four and five.

• Projections for revenue and methodology used in arriving at these figures
• Expected shifts in revenue or expenses as a result of seasonality or other factors affecting supply and demand
• Expected expenses from loan payments, rent, lease payments, marketing and advertising fees, employee salaries, benefits, legal fees, warranty expenses, and more

You can use our SBA loan calculator to help you estimate monthly payments for the funding you’re currently looking for and projections for any additional loans you may need. Monthly payments can fluctuate depending on the terms of your loan. If you’re looking for accurate estimates, you can read our article on SBA loan rates .

Step 7: Write the Financing Request

This section is where you should specify how much funding you need, why you need it, what you’ll use it for, and the impact you expect it will have on your business. It’s also a good idea to indicate when you expect to use the funds over the course of the next three to five years.

Here is a checklist of some important items you should cover:

• How much funding you need and why
• When you will use the funds over the next three to five years
• What you will use the funds for
• The expected impact this will have on your business and how it will help reach your business goals
• The anticipation of any recurring needs for additional funding
• Your strategy for how you expect to pay off the loan
• Any future financial plans for your business

Step 8: Fill In the Appendix & Supplemental Information

This last section of your SBA business plan should include any additional information that may be helpful for lenders. This can include more detailed explanations or clarifications of data from other sections of your business plan.

Here are some examples of documents you can include:

• Business licenses
• Certifications or permits
• Letters of reference
• Photos of products
• Resumes of business owners
• Contractual agreements and other legal documents

Step 9: Complete the Executive Summary

The executive summary, which is the first section in a business plan, should be no more than one to two pages and provide a high-level overview of the items listed below. Since each section above is already detailed, a brief description of those sections will be sufficient:

• Your company’s mission statement
• The background and experience of your leadership team
• The product or service and what purpose it serves
• Your target market for the product or service
• Competitive analysis of other products and services
• Your competitive advantage or why your company will succeed
• Marketing and sales strategy
• Financial projections and funding needs

Depending on the type of SBA loan you’re applying for, certain areas of your business plan may be weighed more heavily than others. You can learn about the SBA loan options you can choose from in our guide on the different types of SBA loans .

Additional Resources for Writing an SBA Business Plan

If you’re looking for additional resources to help you write a business plan, you can consider the options below. Since a business plan is just one of many documents you’ll need, you can also read our guide on how to get an SBA loan if you need help with other areas of the loan process:

• SBA: SBA’s business guide contains information on how you can start a small business. It includes steps on creating a business plan, funding your company, and launching a business.
• SCORE: Through SCORE, you can request to be paired with a mentor and get business-related education. Educational courses come in several formats, including webinars, live events, and online courses.
• Small Business Development Center (SBDC): SBDCs provide training and counseling to small business owners. This can help with various aspects of your company such as getting access to working capital, business planning, financial management, and more. You can use the SBA’s tool to find your closest SBDC .

Having a strong SBA business plan can improve your chances of getting approved for an SBA loan. If you’re unsure where to start, you can use our guide and template to cover the most important aspects of your business. You can also see our tips on how to get a small business loan . To get even more ideas on creating a strong business plan, you can also utilize resources through organizations such as SCORE and the SBA itself.

About the Author

Find Andrew On LinkedIn

Andrew Wan is a staff writer at Fit Small Business, specializing in Small Business Finance. He has over a decade of experience in mortgage lending, having held roles as a loan officer, processor, and underwriter. He is experienced with various types of mortgage loans, including Federal Housing Administration government mortgages as a Direct Endorsement (DE) underwriter. Andrew received an M.B.A. from the University of California at Irvine, a Master of Studies in Law from the University of Southern California, and holds a California real estate broker license.

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How to write a business plan for a bank loan?

Whether you need a bank loan to start up a new business, grow an existing business or anything in between, writing a business plan can help make it a reality!

It involves outlining your goals and explaining how you plan to achieve them. A professional business plan is crucial to obtaining a bank loan and planning your outlook for both the short and long-term future.

Yet, most entrepreneurs view writing a business plan as a daunting task. But, it doesn't have to be!

In this guide, we'll cover what writing a business plan for a bank loan entails, why you need to write one, what tool you should use and the content that should be included.

Ready? Let's get started!

In this guide:

What is a business plan?

Do i need a business plan to secure a business loan, do banks actually look at business plans or is it just a box-ticking exercise, what do banks look for in a business plans, what tool should i use to write a business plan for a bank loan, what does a business plan for a bank loan look like, how long does a business plan for a bank loan need to be, key financial metrics and ratios banks look at when deciding on a loan application, examples and templates of business plans for a bank loan.

A business plan is a written document that contains two key parts:

• A written presentation that outlines what the company does, its medium term objectives and explains how it plans to achieve them.
• A financial plan that includes a cash flow statement, profit and loss statement and a balance sheet.

To get a business loan approved you need to convince the lender that your business will be able to repay it.

Regulated lenders also have legal obligations to demonstrate to their regulator that they are lending responsibly, meaning that your business can afford the loan.

Therefore, whilst a business plan is not strickly necessary to obtain a business loan, most banks will likely ask you to provide one, as it provides an objective way of assessing your borrowing capacity and to demonstrate affordability.

Imagine the following situation, a business borrows £100k from a regulated bank, and then goes bust. The regulator decides to investigate the bank. The bank can then provide the business plan to help demonstrate that the loan was affordable and that it behaved responsibly.

Most banks will look at your business plan when you hand in a loan application. How in-depth the bank looks at it though will depend on whether you are borrowing against assets or cash flow.

Asset-based lending

Borrowing against assets involves lending money to businesses whilst using their assets as collateral. These loans are also called secured loans.

Secured loans help reduce risks for lenders, they can seize the collateral if the borrower is unable to repay and sell the asset to recoup part of their losses. That's what happens with mortgages, for example.

Banks usually have pre-set loan-to-value ratios (LTVs) for the most common types of assets (property, equipment, vehicles etc.).

A loan-to-value assessment simply compares the appraised value of your asset against the value of the business loan.

For example, if you're buying a car worth £10,000 and the LTV ratio used by the bank is 70%, they can lend you up to £7,000 and will take the car as collateral.

The bank still needs to assess that you can afford the £7,000 business loan. They might ask you for a business plan, but might decide not to do so given that it's a small amount. They might simply look at your trading history or ask for a personal guarantee from the business owner instead.

BDC Bank - a Canadian bank - says that "financial institutions don’t use the same loan-to-value ratio for all asset types because of different asset liquidity levels".

In layman terms, liquidity means how easy it is to sale the asset. If it's a delivery van, it's very easy as there is an established secondhand market (high liquidity), if it's a chemical plant it might take up to a year (low liquidity).

In a nutshell, the easier it is to sale the asset (if it needs to be seized), the higher the loan amount.

According to BDC Bank , likely LTV ratios for common asset types are:

• Marketable securities (high in liquidity): 90%
• Accounts receivables: 75%
• Commercial and industrial real estate: 65% to 100%
• Inventory (low in liquidity): 50%.

Capital Source Group - an alternate lender - says that some banks require a down payment of up to 20% of the market value of the equipment, referring to firms seeking finance to purchase key equipment and mention an indicative baseline LTV ratio of 50%.

Cash-flow-based lending

As we've seen above, asset-based lending is relatively straighforward, and lower risk as the asset is used as collateral. The decision making is more complicated if your business borrows against cash flows (for e.g. working capital purposes).

Cash-flow-based borrowing involves lending money to businesses based on their predicted cash flows. The bank has to assess how much you can borrow based on historical and projected financials.

Doing so requires to have a clear understanding of the future cash flows of the business, which can only be obtained through a business plan.

Most banks ask for business plans when you apply for a business loan because they need it to understand:

Who the borrower is

Whether or not there is collateral.

• If there is a trading history that supports the cash flow forecast
• What borrowing capacity and affordability can be inferred from the forecast

Firstly, the bank has to understand what entity or person it is lending money to. For example, if you take over a business, you could buy either its assets or shares.

If you were to buy their assets, a new company would likely be created but if you were to purchase their shares, you could do it directly or via a holding company (likelier option).

Depending on which option you choose, the bank has to decide whether it's lending to your current business, yourself or the holding company. The answer to this question then determines the level of risk the bank is undertaking.

Next, the bank has to decide whether or not there is sufficient collateral. Can it secure the loan against the business assets or does it need to request a personal warranty from the business owner(s)?

It will assess:

• Whether or not your current business has any assets that can be used as collateral
• If you, the business owner, have a house or cash in the bank or can offer a credible personal guarantee
• Whether or not the holding company will provide its shares as collateral or if it needs to ask its shareholders for a personal guarantee (or both)

Does the trading history supports the cash flow forecast

The bank will want to know if there is any trading history to support your cash flow forecast.

If there isn't, it becomes harder to judge and riskier from a lender's viewpoint.

Borrowing capacity and affordability: total indebtedness and credit metrics

Lastly, the bank will estimate your business credit score taking into consideration: whether or not you have any outstanding debt, what your past repayments were like, and credit metrics such as fixed charge coverage ratio, net debt-to-equity ratio, and interest coverage ratio (we'll detail these 3 ratios later in this guide).

Create your business plan online!

Get a professional business plan to support your application for bank loan.

Writing a business plan can be both tedious and difficult if you start from scratch. Luckily for you, online business plan software can help you write a professional plan in no time.

There are several advantages to using specialised software like The Business Plan Shop:

• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can be inspired by already written business plan templates
• You can easily make your financial forecast by letting the software take care of the financial calculations for you
• You get a professional document, formatted and ready to be sent to your bank
• You can easily compare your forecast against actuals from your accounting system to ensure you are on track to deliver your plan, and adjust your forecast to keep it up to date as time goes by

If you are interested in this type of solution, you can try our software for free by signing up to The Business Plan Shop today .

There are seven key sections that any business plan for a bank loan must include:

• Executive summary
• Company Overview
• Products and services
• Market analysis
• Financial projections

Let's have a look at each one in more detail.

1. Executive summary

Your executive summary should provide the bank with a quick snapshot of your business. Remember that this is the first section of your business plan that they will look at - you need to keep them interested and do not need to go into depth.

Instead, outline who you are (what type of business) and what goods or services you sell. You'll also need to give them a glimpse of your financial projections (expected revenues and profitability).

Lastly, you should explain what are your total funding requirements and how much you are seeking to borrow from the bank.

2. Company Overview

In this section, you should explain what structure your business takes up (sole trader, partnership or limited liability company). This way, the bank understands whether or not you are liable if your business defaults on its loan. If you are not they might ask you for a personal guarantee.

If you are a partnership or limited liability company, state who your partners are and what percentage of the business they own. Also, outline any skills and experience they have that make them suitable for their role.

Finally, you should state where your business(es) are located and why that particular location was chosen (for example, it could be because of the parking slots available or transport links, making it very accessible for potential customers).

3. Products and services

You should include a detailed list of the products or services that you sell. Whilst you don't have to specify every single item or service, you should aim to include all of the key ones.

For example, for a hair salon, this might be hair care, washing, stylish haircuts, combing, hair colouring, waving, and hair straightening.

4. Market analysis

The market analysis section of your business plan for a bank loan is where you bring together your local and national market research. Using charts and graphs along with text makes it easier to illustrate your points clearly.

You should also state who you plan to target and the competitors in your local market. For example, if you were a coffee shop business, you could target people seeking a takeaway coffee, those looking for a lunch or snack or people looking for a place to work.

Finally, you should state the regulation in effect in the local market and whether there are any plans to make changes in the future (by the council for example).

5. Strategy

Your strategy section helps explain how you plan to make your business a success. Both marketing and pricing strategies feature in this section.

Explain how you've determined your prices and whether or not they differ from your competitors. Remember that this will depend on your overall pricing strategy (cost-plus pricing, competitive, price skimming, etc.).

Your marketing plan should explain how you plan to attract and retain customers. For example, you could have an attractive storefront with your logo to encourage potential customers to visit inside. You might also offer loyalty cards (for example, buy 3 burgers, get the fourth one free).

Finally, key milestones must also be outlined so that both parties are aware of what needs to be achieved within an agreed-upon timeframe along with measures taken against any foreseeable risks and mitigants related thereto.

6. Operations

The operations section of your business plan for a bank loan should include information about your staffing team. List any current and future recruitment plans, employee skills, experience and what roles they are going to take up.

Plus, you should state what suppliers you chose and why. For example, you might have chosen a particular supplier thanks to their eco-friendly stance or brand reputation.

7. Financial projections

Arguably the most important section in your business plan for a bank, your financial projections help the bank decide whether or not they should lend to your company.

This section includes your balance sheet, profit and loss statement and cash flow forecast. Figures from these three statements are used to compute key ratios (see the section below).

Profit and loss statement

A projected P&L statement shows how much money the company might make and how much it will grow in the future.

It helps stakeholders understand how successful the company could be.

Balance sheet

A balance sheet shows what your business owns (assets), what it owes (liabilities), and what has been invested by the owners (equity).

Looking at a balance sheet enables investors, lenders, and business owners assess the capital structure of the business.

One key aspect of this analysis is achieved by calculating key liquidity (short-term) and solvability (long-term) ratios to understand if the company can pay its debts as they fall due.

Cash flow statement

A projected cash flow statement is a document used to plan out how much cash a your business will generate (inflows) and spend over a certain period (outflows).

This document shows the expected cash flows from the operations, investments and other financial activities.

Having this information can help you decide how much money your business needs to save for future expenses or investments, as well as anticipate potential cash shortfalls.

Like most business plans, there's no specific number of pages that yours must have. A good rule of thumb, however, is to keep it between 15 and 35 pages.

As long as you've covered all of the key sections, ranging from the executive summary to the financial projections, your business plan for a bank loan should be good to go.

Remember, quality is more important than quantity.

Get a professional business plan to support your bank loan application.

It's worth noting that ratio targets set by lenders are industry dependent.

There are usually three key financial ratios that banks calculate before lending money:

1. Fixed charged coverage ratio

This solvency ratio assesses how much headroom a business has over its upcoming debt repayments.

It is calculated by dividing the Cash flow available for debt service (or CFADS), which measures how much cash flow is available to pay off debt obligations, by the amount to be paid to service the debt (interest plus principal repayments).

It is one of the main ratios used by lenders to assess the borrowing capacity and the financial risk of a given business.

For businesses utilising bank debt, lenders usually expect the fixed charge coverage ratio to be above 2.0x, which implies that the business is expected to generate twice as much cash as is needed to service the debt, leaving a healthy buffer.

In any case, the ratio should be above 1.0x, below 1.0x the business is not generating enough cash to service its debt which puts lenders at risk.

For example, if your business records a CFADS of £500,000 and total debt service amounting to £250,000 (£50,000 of interest payments, and £200,000 of principal repayments), it will have a fixed charge coverage ratio of 2.0x.

2. Debt to EBITDA

This solvency ratio is used to assess the level of debt and borrowing capacity of the business. It compares the level of debt to the firm’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), used as a proxy for the operating cash flow.

For example, if your company has debt worth £20m and an EBITDA of £5M, your debt to EBITDA ratio would be £20m/£5m = 4.0x.

In simple terms, a company with a debt to EBITDA ratio of 4.0x would need at least 4 years to repay its debt. Whether or not this is too high will depend on the sector and the risk appetite of the lender.

3. Interest coverage ratio 

This solvency ratio is commonly used by lenders to measure a business's ability to pay interest on its debt. It compares the firm’s EBITDA, used as a proxy for the operating cash flow, with the amount of interest expense due in a financial year. 

For example, if your business has an EBITDA of £500,000 and interest expenses amounting to £50,000, it will have an interest coverage ratio of 10.0x.

The rationale behind this ratio is that, if the company was to default on its debt, lenders could potentially agree to delay the principal repayments as long as the company remains able to at least pay the interest. In that scenario, their capital would remain at risk but lenders would still be able to earn a return.

The higher the interest coverage ratio the better. Targets set by lenders are industry dependent. An interest coverage ratio higher than 4.0x is generally a good starting point.

Most of the business plan templates offered by The Business Plan Shop are examples of companies seeking bank loans and so can be used to structure your own plan.

We have templates to fit various industries including hospitality, retail, services, construction, industrials and more.

We hope that this guide has helped you to better understand how to write a business plan for a bank loan. Do not hesitate to contact us if you still have questions.

Also on The Business Plan Shop

• 5-years business plans explained
• Business plan vs budget: what's the difference?
• Business plan structure: an in-depth guide

Know someone looking to take out a bank loan for their business? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Micro Lending Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Financial Service Industry » Lending & Loan Brokerage Business

Are you about starting a micro lending business? If YES, here is a complete sample micro lending business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a micro lending business . We also took it further by analyzing and drafting a sample micro lending company marketing plan template backed up by actionable guerrilla marketing ideas for micro lending businesses.

What Does It Take to Start a Micro Lending Business?

Building a micro lending and mortgage business is not different from building a normal brokerage or loan business. Micro lenders may actually broker loans to small businesses without collateral, but they are different from brokers because they have the license and right to lend money to people seeking home financing.

Building your own Micro lending and mortgage business might seem or sound easier and the joy of creating your own hours and keeping your commissions may be very attractive. You may also avoid office drama and politics and plan your own advancement opportunities.

But bear in mind that handling some logistics properly will be very crucial to getting your micro loan business running successfully. This is why it is very important that you learn all the ropes of the business before you look at starting yours. There are many grey areas of the micro lending business that needs to be mastered.

One of the ways to get really conversant with the micro lending business is to carry out your own feasibility research. Also you may want to use a business plan template to learn all that the business involves. The cost of starting, how many employees you will need amongst many others. Here is a sample micro lending business plan;

A Sample Micro lending Business Plan Template

1. industry overview.

Even in hard economic conditions, people and enterprises go for loans to be able to pay for the purchase of real estate and other transactions, which in turn make the lending business a recession-proof business. But before going into the micro lending and mortgage business, you need to know the contours and crannies of this large industry.

The Micro lending and mortgage business is actually coming back from a drastic crash in the housing market, economic recession and also riding with the swelling competition from commercial banks within the five years to 2016. The Micro lending and mortgage industry revenue doubled prior to the recession because of the unequivocal consumer demand for credit and the popular use of a wide variety of micro options for previously unqualified borrowers.

Due to the steady and good improvements in the housing sector in the past few years, the micro lending and mortgage industry has moved its focus toward earning back its reputation. In the approaching years to 2022, the micro lending and mortgage industry it is believed to continue recovery due to raising economy, and the housing market will favourably help the industry’s growth.

The Micro lending and mortgage industry may also venture into a declining stage of its economic life cycle because of the competition they face from commercial banks which is becoming imminent. The industry value added (IVA), which actually decides the industry’s contribution to the overall economy, is expected to grow at an annual rate of 1.5% within the 5 years to 2022.

Earnestly, the US GDP is believed will grow at a yearly rate of 2.2% during the same period. All these figures explain that the industry’s share of the US economy is quietly declining. A

lso during the past 10 years, the immediate introduction of brand new products, including subprime mortgages, Alt-A mortgages and NINJA loans, and reduced lending standards supported demand for home loans, has explicitly injected a positive pressure on the need for micro lenders and brokers that have actually enjoy unlimited access to these products and to a enjoy variety of interest rates.

2. Executive Summary

Vanguard lenders LLC is an outstanding micro lending and mortgage firm that will be attending to the enormous needs of small businesses, real estate professionals, builders and individual home buyers. We have access to a full range of microfinance and we offer the right loan–with the best rates, terms and costs–to meet our prospective customer’s enormous needs.

Vanguard lenders LLC offers high-quality micro lending and mortgage services to residential and business customers. Our major aim is to provide our customers with substantial microloans at reasonable prices and rates, while also keeping our customers Informed and active throughout the process.

Vanguard lenders LLC will also strive to become friends and advisers to our customers as well as quality service providers. Vanguard lenders LLC is a good firm to work, a professional work environment that is challenging, rewarding, innovative, and respectful of our customers and employees ideas and plans.

Vanguard lenders LLC will unanimously provide excellent value to our customers and fair reward to its owners and employees. Vanguard lenders LLC is also a legally registered micro lending and mortgage firm which will be located in the City of Alexandria, Virginia.

We will be occupying a standard office facility in the business district of the city, giving us the suitable traffic to attract customers. We plan to mould Vanguard lenders LLC into the very best of Micro lending and mortgage firm and actually compete favourably in the industry.

Our business goal which is to take over the market completely may seem outrageous, but we are very positive that it will be realized because we have done an extensive research and feasibility studies and we believe we have dotted all our i’s and made all reasonable judgements to position Vanguard lenders LLC for the war to take over Virginia entirely.

Vanguard lenders LLC are capitalized by two principal investors, Mr John Taylor and Mr Alfred Garth. Both are well renowned in the lending industry with a combined experience of over 30 years in the industry.

3. Our Products and Services

We’re going to be offering a varieties of services within the parameters of the micro lending and mortgage services industry in the united states of America and of course on the global stage. We are well place to maximise profits in the industry and we plan to do all within the proximity of the law in the United States to achieve these goals, aim and ambition. Our business offering are listed below;

• Offer loans to small businesses
• Providing residential mortgages
• Providing commercial and industrial mortgages
• Providing home equity loans
• Providing equipment loans
• Providing vehicle loans
• Providing residential mortgages loans online
• Providing mortgage financing online
• Providing home equity loans online
• Providing an online mortgage marketplace
• Providing other related loan cum mortgage consulting and advisory services

4. Our Mission and Vision Statement

• Our vision is to build loan services brand which will become the lead choice for individuals, smaller businesses and corporate clients in the whole of Virginia.
• Our vision shows our zeal, values, integrity, security, service, excellence and teamwork.
• Our mission is to provide professional, reliable and trusted microloan services that assist individuals, start – ups, corporate organization, and non-profit organizations in achieving their goals with little or no stress .
• We will build our business to become one of the leading firms in the micro loan services line of business in the whole of America, starting with Alexandria Virginia.

Our Business Structure

Vanguard lenders LLC is a micro loan service firm that we hope to grow big in order to compete favourably with leading microloan service firms in the industry both in the United States and on a global stage. We understand the need to create a solid business structure and hire capable hands that will aid in making Vanguard lenders LLC the best among the best.

The sort of loan services we hope to build and the great goals we want to achieve is what moved us to choose the list of offices and individuals we need to hire. We believe that these portfolios will be filled with well experienced and learned individuals, who understand the do and don’ts of the lending market.

We also hope to hire people that are qualified, hardworking, and creative, result driven, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

Chief Executive Officer

• Business consultant

Human Resource and Admin Manager

• Sales and Marketing director
• Company accountant

Receptionist

5. Job Roles and Responsibilities

• The Chief Executive Officer will be responsible for providing work direction for the business
• He will be responsible for building, communicating, and implementing the vision, mission, and direction of Vanguard lenders LLC – which also includes leading the achievement and implementation of all strategies.
• The Chief Executive Officer is also in charge of fixing prices and signing business deals for the business
• He is also responsible for employment
• He also pays workers salary
• He signs checks and documents for and on behalf of the agency
• The Chief Executive Officer also Evaluates the success of the organization

Business Consultant

• Will be in charge of providing residential microloans
• Responsible for providing commercial and industrial microloans
• Will be obligated to provide home equity loans
• Also provides equipment loans
• Charged with providing vehicle loans
• Is also in charge of fixing micro and mortgage financing online
• The business consultant is also charged with fixing home equity loans online
• Provides an online micro and mortgage marketplace for the company
• Also responsible for providing mortgage related loan cum lending consultancy
• Oversees the running of HR and administrative tasks for Vanguard lenders LLC
• In charge of Monitoring office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Makes sure of the operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Is tasked with staying updated on job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Builds the reputation of the firm by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Tasked with stating job positions for recruitment and managing interviewing process
• Responsible for organising staff induction for new team members
• Tasked with organising trainings, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Tasked with overseeing the smooth running of the daily office activities.

Sales and Marketing Director

• Responsible for organising external research and coordinating all the internal sources of information to retain the organizations’ best customers and attract new ones
• Responsible for creating demographic information and analysing the volumes of transactional data generated by customer purchases
• Expected to understand, prioritizes, and reaches out to new partners, and business opportunities et al
• Tasked with understanding development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• It’s the job of the director to supervise implementation, advocate for the customer’s needs, and communicate with clients
• The sales and marketing director is also charged with creating, executing and evaluating new plans for expanding increase sales
• Keep all customer contact and information
• Represents the company in strategic meetings
• Aid to increase sales and growth for the business

Company Accountant

• The company accountant is responsible for preparing financial reports, budgets, and financial statements.
• Also provides the managements with financial analyses, development budgets, and accounting reports; analyses financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• The company accountant is also tasked with the company’s financial forecasting and risks analysis.
• Should be able to understand and take care of the firm’s cash management, general ledger accounting, and financial reporting
• In charge of developing and managing financial systems and policies
• The company secretary is also responsible of administering payrolls
• Ensures that Vanguard lenders LLC complies with taxation legislation
• Also take care of all financial transactions for Vanguard lenders LLC
• Is the internal auditor for the organization
• The receptionist is expected to welcome clients by greeting them in person or on the telephone; answering or directing inquiries.
• Is tasked with providing all clients with a personalized customer service experience of the highest level
• Is expected to use every opportunity to build client’s interest in the company’s products and services
• Responsible for managing administrative duties assigned by the Admin manager in an effective and timely manner
• Beware of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• The receptionist will also Receives parcels / documents for the company
• It’s tagged with Distributing mails in the organization
• Handles any other duties as assigned by the Admin manager
• Responsible for the cleaning the floors of Vanguard lenders LLC facility
• Keeps note and make sure the toiletries and supplies don’t run out of stock
• Ensures that both the interior and exterior of the firm are always clean
• Handles any other duty as assigned by the restaurant manager.

Security guard

• The security guard is responsible for protecting the firm and its environs
• Also controls traffic and organize parking
• He is Tasked with giving security tips when necessary
• Should also Patrol around the building on a 24 hours basis
• Will be expected to give security reports weekly

6. SWOT Analysis

We at Vanguard lenders LLC are prepared to build a super– structured microloan services firm that can take over the entire microloan service industry. Which is why we inculcated the help of well known consultancy firm, a firm known for its strict and precise way of doing business and also renowned for offering the best when contacted.

We contacted Brick Lewis Financial consults to help us with a SWOT Analysis in our designated business location and long term goals. Brick Lewis financial consults being the best in what they do, involved the management of Vanguard lenders LLC in conducting a SWOT analysis.

Here is a summary from the result of the SWOT analysis that was conducted for Vanguard lenders LLC by Brick Lewis financial consults;

It was literally noted that the strength of Vanguard lenders LLC doesn’t really rest on our fierce business network with other financial lending institutions, professional brokers in the industry or players in the real estate industry, but on the capacity, vision and experience of our team.

Vanguard lenders LLC has a team that are prepared to offer our clients the very best; a team that is well placed, professional and ready to pay attention to details and to maximise financial profits for the business. Vanguard lenders LLC are also positioned in a city with more family values and acknowledgement for each other, which will serve as a force to move our business to its destination.

Brick Lewis Financial consults believe our weakness would be how easy we break into the market and gain acceptance since we are just a new firm, especially from corporate clients in the already saturated micro lending and mortgage industry; that is perhaps our major weakness. But we’re positive that our publicity and advertisements would aid us in this aspect.

Opportunities

The opportunities in the lending industry is very big and daring, going by the size of people, business start ups and without doubt corporate organizations who are all in need of microloans to aid them reach their individual goals and vision.

Vanguard lenders LLC being a standard and well – positioned microloan services firm, we are well – prepared and ready to clamp any opportunity that comes our business path within the proximity of the law in the United States.

Brick Lewis Financial consults believes that most of the threats that we at Vanguard lenders LLC are likely to face as a microloan service firm operating in the United States will be unfavourable government policies, the introduction of a competitor within our location of operations and global economic downturn which usually affects purchasing / spending power.

It was also envisaged that we should beware of huge losses in three situations: due to sharp, sustained increases in interest rates, accounting control fraud, or the collapse of hyper-inflated residential real estate bubbles. So, to mitigate these threats, we have induced the use of credit scoring software like and we hope and are well prepared to use else any of these threats to our own advantage.

7. MARKET ANALYSIS

• Market Trend

We all know and understand how massive and enormous the microloan services industry is and of course it is one industry that works for individuals and businesses across different industries.  A lot of people depend on the services provided by the industry to empower themselves and businesses, showing how important and helpful this industry has been and will still remain.

The micro lending and mortgage industry flows with a low level of capital intensity. It is believed that for every $1.00 spent on wages, the micro lending and mortgage industry will allocate $0.08 in capital investment. This 2016 figure indeed shows a slight increase from $0.05 in 2011.

The micro lending and mortgage industry gives loans to businesses, agencies and individuals by raising funds in the secondary market. These businesses will continue to perform these functions without depending on significant capital expenditure.

Most of the capital expenditure for the lending business is related to computers and technology used to process loans and store information. We expect the increase in the investment in technology infrastructure in the micro lending and mortgage industry, particularly delivering online services.

It is sincerely true that without the services of the loan services industry, most individuals and even start – up businesses will find it hard to access loan or save – up to purchase a property. The lending industry is explicitly responsible for helping individuals and businesses bypass the bureaucracies involved in obtaining loans from banks and other financial institutions et al

Within the past few years, the lending industry has aided in reducing unemployment in the United States and has also boosted the revenue generated in the United States. So also, the microloan service industry has benefited from the advancement of online platforms.

Moving higher, increasing product penetration and of course an expanding customer base is expected to drive growth in the industry.

8. Our Target Market

The lending industry is an industry that has without doubt aided a lot of individuals, companies and start ups. At Vanguard Mortgages, we will first and foremost serve small to medium sized business, from new ventures to other bigger businesses and individual clients, we hope to take the market one step at a time and without much notice take over the market quickly.

Vanguard lenders LLC being a standard micro lending and mortgage  business will capitalize on the  large variety of microloan service and other industry related services we wish to offer, hence made sure all are employees are well trained and equipped to serve a diverse range of clientele base.

Vanguard lenders LLC target market will slice across businesses of different sizes and individuals. We believe our business is equipped with a breath taking business concept that will help us work with individuals, small businesses and bigger corporations in Alexandria, Virginia and all other cities in the United States.

Outlined below is the list of businesses and organizations that we have categorically designed our products and services for;

• Small businesses
• Individuals and interested homeowners
• Real Estate companies and investors
• Nongovernmental organizations
• House of worships and other religious organizations
• Educational institutions
• Corporate companies

Our Competitive Advantage

We at Vanguard lenders LLC understands explicitly the level of competitive in the microloan service industry, and due to our extensive research and planning, we should be able to penetrate the market and offer our prospective clients with easy to access microloans; thereby deleting the hard and long process needed to obtain loans from the bank and other financial institutions.

Vanguard lenders LLC might be a new micro lending and mortgage business in the United States of America lending industry, but it cannot be denied that the workforce and owners of Vanguard lenders LLC are considered micro lending and mortgage industry gods.

Right from the primary foundation of the business, who are the owners, up to the very height of our employees are core professionals, well trained and highly qualified microloan consultants in the United States. This is a fact that will push us ahead of competitors in the lending industry.

We also help to create a comfortable business environment for our employees and also inculcate them into the business by offering work bonus and loyalty bonus which will be calculated with more or less 10 years duration, which will push them to give their all and stay loyal to the business, and also help us to build a classic business that will be the topmost micro lending and mortgage business in the whole of United States.

9. SALES AND MARKETING STRATEGY

• Sources of Income

A vanguard lender LLC was founded to become the lead player in the micro lending and mortgage loan field. We also hope to bring in good and substantial profit, while also giving our customers and satisfaction they deserve to achieve their goals and targets.

We plan to generate income by offering the following microloan services for individuals, real estate companies, NGOs and for corporate organization. We plan to maximise profits and get substantial incomes by offering the following services;

10. Sales Forecast

We at Vanguard lenders LLC actually understand how hard and the rigorous process people go through to obtain loans from banks and other financial institutions, we hope to make this process less tough and create a substantial base of happy and satisfied clients.

This goes to show that the potential to generate income for the business cannot be ruled out. Vanguard lenders LLC was established to lead the war against poverty and we hope to make it the best of the best, and on our online platforms and we are very positive that we will meet our set target of getting substantial income / profits from the first six month of work and grow the business and our clientele base within and outside Virginia

After our extensive market research and with the help of the various consultancy firms we employed, we came out with our sales forecast for the next three years. The sales forecast was calculated and planned based on information gathered on the field and some assumptions that are common with new entrants in the Industry.

Outlined below is a detailed sales forecast for Vanguard Mortgages, which we believe and hope we will surpass with hard work and perseverance. This sales forecast is also based on the location of our business and the innovative business we will be offering to our clients.

• First Fiscal Year -: $750,000
• Second Fiscal Year -: $1.4 million
• Third Fiscal Year -: $3.2 million

Note : The above forecast was done based on what can be gotten in the industry and with the expectation that there won’t be any major economic meltdown and natural disasters within the next three years in the whole of Virginia.

We also hope there won’t be any fierce competitor offering all the services we hope to offer to our customers in Alexandria Virginia. It will also be worthwhile to note that the above forecast might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We all at Vanguard lenders LLC are very much aware of the threats and strict competition in the micro lending and mortgage business, and we have devised our strategic means to win and suppose them. This may include hiring the best hands for the job and also creating a more attack minded marketing plan.

Our sales and marketing director will be employed based on his/her undeniable experience and innovative competition winning mind-set in the industry and we hope to train him or her extensively with other sales and marketing workers to be prepared and well equipped to meet their targets and the overall goal of Vanguard Mortgages.

We also hope to make sure that our genuine and businesslike approach speaks volume for us in the industry; we also plan to build a business that will use or employ the use of customer satisfaction to boost our client base.

The major goal of Vanguard lenders LLC is to grow a business that will be considered the very best in Virginia and one of the top 5 micro lenders in the United States of America which is why we have after much consideration and research outlined strategies that will help us lead of the Alexandria market and grow to become a major force to consult with in Virginia in the next two years.

We hope to make use of the listed strategies to build our business and become the war Vanguard for the battle against economic recession;

• We plan to introduce Vanguard lenders LLC by sending introductory letters with our business brochure to individuals, households, corporate organizations, schools, players in the real estate sector, and all the people of Alexandria.
• We also plan to advertise Vanguard lenders LLC in important financial and business related magazines, newspapers, TV stations, and radio station.
• We also plan to Vanguard lenders LLC on yellow pages ads (local directories)
• We also plan to attend important international and local real estate , finance and business expos, seminars, and business fairs et al
• We also hope to Create different packages for different category of clients (individuals, start – ups and established corporate organizations) in order to work with their budgets
• We also plan to make use the internet to promote our business
• We hope to encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

Vanguard lenders LLC have also contacted the service a renowned firm that is known for its legit ways of boosting a company’s brand awareness, to help us create publicity and advertising strategies that will aid us to attract and keep our target market, and also make our presence known and felt by all and sundry.

We also want to take Alexandria Virginia by storm with our undefiled publicity and advertising strategies. Listed below is the summary of capable strategies suggested by Artwork business consult for Vanguard Mortgages;

• We hope to place adverts on both print (community based newspapers and magazines) and electronic media platforms; we will also advertise Vanguard lenders LLC on financial magazines, real estate and other relevant financial programs on radio and TV
• Vanguard lenders LLC will also sponsor relevant community based events / programs
• We also plan to make use of various online platforms to promote the business. This will make it easier for people to enter our website with just a click of the mouse. We will take advantage of the internet and social media platforms such as; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
• We also plan to mount our Bill Boards on strategic locations all around Albany – New York.
• We at Vanguard lenders LLC also plan to engage in road show from time to time
• We also plan to distribute our fliers and handbills in target areas all around Alexandria
• We plan to make sure that all our workers wear our branded shirts and all our official vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

We all at Vanguard lenders LLC understand that the industry is moved by the increase in demand and availability of real estate / properties which is why there can never be a price model that will be suitable for the lending industry. As we all know, the prices for properties fluctuates on a regular basis.

We are also aware that most lending firms rely on commissions since they serve as middlemen between those seeking for microloans and the secondary financiers but we hope to create a more direct approach by offering those loans ourselves which can be very possible due to the large incentives our founders are willing to inject.

We hope to keep the prices of our services and commissions at Vanguard lenders LLC below the average market rate for our clients for the maintime.

We also hope to provide them with loans coupled with low interest rates that will bring them closer to the firm, and we hope to move our prices a little higher when we have achieved a substantial corporate identity in the micro lending and mortgage industry.

• Payment Options

We plan to provide various a wide varieties of payment options to suit our clients at Vanguard Mortgages. We understand the need and the diverse countenances of people, and the way they understand and process things differently, and we tend to provide a suitable platform that will suit all and sundry equally. Listed below are the payment options that we will make available to Vanguard Lenders LLC.

• Payment through bank transfer
• Payment through online bank transfer
• Payment with check
• Payment with bank draft
• Cash payment

With reference to the above platforms, we have chosen a well renowned bank in the United States to aid in our business.

We have chosen and opened a corporate current account with Capital one financial Corporation. Our bank account numbers will be made available in website and promotional materials to clients who may want to make cash deposit and it will also be given explicitly to clients on request.

13. Startup Expenditure (Budget)

We at Vanguard lenders LLC understand that starting a Micro lending and mortgage Business is not an easy task especially due to its capital constraints; this is because you are not expected to acquire expensive machines and equipment, be capable to provide loans and solve other issues and legal proceedings.

Also one need to be concerned about is the enormous amount needed to acquire or lease a standard office facility in a good and busy business district, the price needed to acquire furniture and equip the office, the money needed to purchase the required software applications, the needed to pay bills like phone bills and water bills, obtain license, advertise the business. Outlined below is a detailed financial projection and costing for starting Vanguard Lenders LLC;

• Price of incorporating the Business in the United States of America – $750.
• Our budget for basic insurance policy covers, permits and business license – $200,000
• Acquiring a suitable Office facility opposite the city hall of Alexandria, Virginia (Re – Construction of the facility inclusive) – $75,000
• The budget envisaged for capitalization (working capital) – $1million
• Budget for settling other legal processes (acquiring business license and all, all Alexandria Virginia city dues et al) – $2,500
• Equipping the office with suitable and standard equipment(computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $7,000
• Purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) – $10,500
• Launching Vanguard lenders LLC official Website – $600
• Our expenditure for paying at least three employees for 3 months plus utility bills – $12, 000
• Other Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $4,000
• Miscellaneous: $10,000

With the above detailed cost analysis of starting a Micro lending and mortgage  Business, it is understood that we need $1,322,350 to successfully set up Vanguard lenders LLC which is a large scale micro lending and mortgage  business.

Generating Funding / Start-up Capital for Vanguard lenders LLC

Vanguard lenders LLC is a well licensed and registered Micro lending and mortgage business which is capitalized by two principal investors, Mr John Taylor and Mr Alfred Garth. They are the founders and financiers of the business and hope to remain so for now, with hope to accept partners at a very ripe and mature stage in the business.

Due to less constraint in financing Vanguard Mortgages, we have outlined the few ways we can acknowledge funding and start up capital. These was may include;

• Generate part of the start up capital from the two principal investors
• Accept soft loans from family members and friends
• Agreeing to angel investors
• Apply for business loan from my Bank (if need be)

Note : Vanguard lenders LLC has been able to generate an enormous $1.4 million from its two principal investors, who aligned and individually prune out $700,000 each. We believe that the amount is substantially enough to run the business for the first three months, which by then we expect to sustain the business by the cash and incentives generated from our business proceedings.

14. Sustainability and Expansion Strategy

Every business wants to expand and stand the test of time, and this achievement lies in the number of loyal customers in their clientele base and the competence of the employees, investment procedures and the business structure they choose. A business without these mentioned criteria is not business but a playground that will end even before it starts.

Vanguard lenders LLC was established to spread its wings across the sky of Virginia, and also expand and fly all through the nick and crannies of the United States, clamping and taking over the market in each turn. We believe with our unique business structure and competent hands, we will be able to start surviving with the cash we make right from the second month of operations.

We also understand that one of the strategies of gaining approval and winning customers over is to offer innovative services to our customers at a cheaper than what is obtainable in the industry and we have made plans to survive and compete favourably within those periods.

We all at Vanguard lenders LLC will ensure that we employ the right foundation, structures and processes, and also make sure that our employees starting from our guards up to our investors are well catered for. We hope to create a family in the firm, that value work ethics, same zeal and goal to move Vanguard lenders LLC to its expected height.

We also plan to employ profit-sharing arrangement which will enable our management staff enjoy the fruit of their labour.

This arrangement will be decided upon during a considerable duration of 5 years and upon decision of the board of the organization. With these and many more attractive employees focused incentives, we hope to hire and retain employees that are the best in any field they are hired for.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Leasing, renovating and equipping our facility: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress

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Business Loans

Top long-term business loans: Best options for April 2024

Kiah Treece

Ashley Harrison

“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Published 11:00 a.m. UTC March 26, 2024

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Long-term business loans can help business owners secure capital for significant investments, such as expansion, equipment purchases or even refinancing existing debts. These loans generally offer repayment terms longer than two years, which can provide you with affordable monthly payments.

The best long-term business loans of 2024 not only come with these lengthy terms but also a variety of loan amounts, lenient credit score requirements and fast funding.

Best long-term business loans

• National Funding equipment financing : Best for fair credit.
• Kapitus business loan : Best for large loans.
• Rapid Finance business loan : Best for fast funding.

Best for fair credit

National funding equipment financing.

Loan amounts

Repayment terms, what you should know.

With an equipment financing loan from National Funding, you can borrow up to $150,000 and choose a repayment term from two to five years. If you’re approved, you can get your funds as soon as the next business day. Plus, if you opt to pay off your loan early, you can get a 6% discount on the remaining balance.

National Funding accepts credit scores as low as 600, which could make it ideal if you have fair credit (usually considered to be a score from 580 to 669). To qualify, your business must also have been in operation for at least six months, depending on your situation. Additionally, your business must generate at least $250,000 in annual revenue, and you’ll need to provide an equipment quote from a vendor with your application.

Note that National Funding charges an origination fee from 1% to 5%, which can impact your borrowing costs. It also doesn’t disclose its interest rates for equipment financing. To see what you might be eligible for, you’ll need to apply and discuss your options with one of the lender’s funding specialists.

Pros and cons

• Accepts fair credit scores.
• Discount available for early repayment.
• Fast funding.
• Doesn’t publish interest rates online.
• Charges an origination fee.
• Lower loan maximum compared to some lenders.

More details

• Loan amounts: Up to $150,000.
• Repayment terms: 2 to 5 years.
• Perks: Early repayment discount (6% of remaining balance).
• Fees: Origination fee (1% to 5%).
• Min. credit score: 600.
• Required time in operation: 6 months.
• Required annual revenue: $250,000.
• Time to fund: Within 1 to 3 business days after approval.

Best for large loans

Kapitus business loan.

Kapitus offers long-term business loans from $10,000 up to $5 million with terms as long as five years. This can make it a good choice if you’re looking to borrow a large amount.

To qualify, you’ll need a credit score of at least 625. Your business must also have been in operation for a minimum of two years, and it must generate at least $250,000 in annual revenue. If you’re approved, you could get your funds as soon as the next business day.

Keep in mind that Kapitus doesn’t disclose its interest rates online, so you’ll have to contact the lender to see what your borrowing costs could look like. Fees could also apply for late payments.

• Can borrow up to $5 million.
• Higher time-in-business and annual revenue requirements compared to some lenders.
• Fees for late payments can apply.
• Loan amounts: $10,000 to $5 million.
• Repayment terms: Up to 5 years.
• Perks: None.
• Fees: Late fee (amount not disclosed).
• Min. credit score: 625.
• Required time in operation: 2 years.
• Time to fund: As soon as the next business day after approval.

Best for fast funding

Rapid finance business loan.

Rapid Finance can be a good option if you’re facing time-sensitive opportunities or unexpected financial demands. You can borrow $5,001 up to $1 million and choose a term from three months to five years. If you’re approved, you could get your funds as soon as the next day — sometimes even as fast as a few minutes or hours after approval.

Prospective borrowers can apply online with a valid form of identification, a business bank account number and routing information as well as the last three months of business bank statements.

Note that Rapid Finance doesn’t disclose its minimum qualification requirements. However, it does identify itself as an alternative funder. This means you might have an easier time getting approved for a business loan from Rapid Finance compared to traditional financing options.

This lender also doesn’t publish its interest rates online. While it does specify that fees can apply, Rapid Finance doesn’t disclose what these fees might be and how much they could cost you. To see what your overall borrowing expenses might look like, you’ll need to contact Rapid Finance.

• Can borrow up to $1 million.
• Considers alternative lending criteria.
• Doesn’t disclose fees (if any).
• Doesn’t disclose minimum qualification requirements.
• Loan amounts: $5,001 to $1 million.
• Repayment terms: 3 months to 5 years.
• Fees: Does not disclose.
• Min. credit score: Does not disclose.
• Required time in operation: Does not disclose.
• Required annual revenue: Does not disclose.
• Time to fund: As soon as the next business day after approval (potentially within minutes or hours of approval).

Compare the best long-term business loans

Methodology

Our expert writers and editors have reviewed and researched multiple lenders to help you find the best long-term business loan. Out of all the lenders considered, the three that made our list excelled in areas across the following categories (with weightings): loan details (40%), loan cost (20%), eligibility and accessibility (15%), customer service (10%) and application process (15%).

Within each major category, we considered several characteristics, including maximum repayment terms, APR ranges, loan amounts, late fees and prepayment penalties. We also considered each lender’s minimum requirements for credit score, time in operation and annual revenue as well as funding time and customer experience.

Why some lenders didn’t make the cut

Of the business loan lenders that we reviewed, only a handful made the cut. This was mainly due to the majority of lenders having maximum terms of only two or fewer years. Some also didn’t receive high enough scores due to not publicly disclosing eligibility information, not disclosing funding speeds or having poor customer reviews.

What is a long-term business loan?

A long-term business loan is a type of term loan that provides a business with a lump sum of capital that can be repaid in installments over an extended period — typically three to 10 years, depending on the lender. This can be ideal for financing major investments, such as the purchase of real estate, the acquisition of another business or large capital projects. 

These loans often come with fixed interest rates, which means your rate and payment will stay the same throughout the life of the loan. Another advantage is that by opting for a longer term, you can keep your payments lower and more affordable. However, this also means you’ll pay more in interest over time.

Current business loan rates

Business loan interest rates vary by lender as well as by the type of financing and the borrower’s qualifications. For example, traditional bank loans typically have lower interest rates than alternative lenders like online platforms or peer-to-peer (P2P) lending. As of Feb. 7, 2024, the average rates with private business loan lenders range from 8.49% to 36% for a business term loan, 8% to 60% for a business line of credit and 7.5% to 24% for equipment financing, according to Lendio.

Keep in mind that several factors can affect the rates you’re offered on business loans — including your personal and business credit, how long your business has been in operation and the amount of annual revenue it generates. Generally, you’ll need good credit to qualify for the best interest rates. While some lenders offer business loans for bad credit , these can come with higher interest rates and more fees compared to good credit loans.

Getting approved for a long-term business loan

While qualifications can vary by lender, here are some common requirements that you’ll typically need to meet for a long-term business loan:

• Personal and business credit: Lenders will generally consider your personal credit score when making an approval decision — especially if you have a newer business that hasn’t yet generated significant revenue. A good personal credit score is usually considered to be 670 or higher. A lender might also review your business credit history.
• Time in operation: Your business will typically need to have been in operation for at least six months to two years. This shows stability and a track record of success.
• Annual revenue: Lenders also want to see that your business has stable and consistent revenue streams. In general, lenders prefer an annual revenue of $100,000 to $250,000. They may also look at your profit margins and overall financial health.
• Collateral: Many traditional lenders require collateral to secure a business loan, such as equipment, real estate or other valuable business assets. There are also some lenders that offer unsecured business loans . However, because unsecured loans are riskier for lenders, they can come with more stringent requirements and higher interest rates. Also note that business loans often require a personal guarantee, which is an agreement that you’ll repay the loan with your personal assets if your business defaults. 
• Business documentation: A lender might ask to see a solid business plan outlining your goals and your business’s financial statements. You’ll also need to specify how you plan to use the loan funds.
• Industry and market conditions: Lenders will generally consider your business’s size and industry as well as market conditions when reviewing your application. If your business operates in a high-risk industry or if the market is uncertain, you could have a harder time getting approved. Lenders also sometimes restrict the types of industries they’re willing to work with, so be sure to double-check before you apply.

Easier to qualify for newer businesses: Compare the top startup business loans

Best for poor credit

Credibly business loan, time to fund.

Choosing the best long-term business loan: How to compare

To choose the best long-term business loan for your needs, it’s crucial to carefully compare the available options. Here are some important points to keep in mind when weighing your loan choices:

• Interest rates: Your interest rate will play a major role in your overall borrowing costs. Also keep in mind that some business lenders charge factor rates instead of traditional interest — this is essentially a flat fee based on your original loan amount.
• Loan amounts: Business loans can range from as little as a few hundred dollars up to $5 million, depending on the lender. Be sure to borrow only what you need to keep your repayment costs manageable.
• Repayment terms: While most business loans have terms of two or fewer years, long-term business loans give you more time to repay your loan. Just keep in mind that the longer your term, the more you’ll pay in interest over time. In general, it’s best to choose the shortest term your business can afford to avoid excessive interest charges.
• Eligibility requirements: Remember that you’ll generally have to meet underwriting criteria for credit score, time in operation, annual revenue and more to get approved. However, exact requirements can vary by lender.
• Fees and penalties: Some lenders charge fees, such as origination fees and late fees. These can add to your overall costs.
• Collateral requirements: Consider whether a secured or unsecured loan will better suit your needs. If you opt for a secured loan , be prepared to offer business assets to act as collateral . Also remember that you’ll likely have to provide a personal guarantee.
• Funding speed: Some lenders offer faster processing times than others. If you need the funds right away, you’ll want to work with a lender that offers quick funding speeds.

How to apply for a long-term business loan

If you’re ready to apply for a long-term business loan , follow these steps:

1. Check your credit 

Lenders will review your personal credit history (and business credit, in some cases) when you apply for a loan — so it’s a good idea to see where you stand before you apply. You can use a site like AnnualCreditReport.com to review your personal credit reports . To check your credit score , you can use an online credit-monitoring service or see if it’s available through your bank or credit card issuer. 

Your business credit report is available through several third-party companies, including Dun & Bradstreet as well as the credit bureaus Experian and Equifax . However, accessing it might come with a fee, depending on the service you choose.

Tip: If you find any errors in your personal or business credit reports, report them to the appropriate credit bureau to potentially boost your credit score .

2. Evaluate your borrowing needs

Consider what type of expenses you need to cover to determine what type of business loan is right for you. For example, you might opt for a general term loan or equipment financing. Also estimate how much you need to borrow and what you can reasonably afford to repay.

Tip: Use our business loan calculator to see what will fit comfortably in your budget.

3. Compare lenders and pick a loan option 

Before you apply, take the time to compare your options with as many business loan lenders as possible. This way, you can find the right long-term loan for your needs. Consider important factors like interest rates, loan amounts, fees and eligibility requirements when weighing your choices. After you’ve done your research, pick the loan option that works best for you.

Tip: Some lenders allow you to get pre-qualified with only a soft credit check that won’t hurt your credit score. This will give you an idea of what rates and terms you might get approved for if you apply.

4. Prepare your documentation 

Gather all necessary documents, such as business and personal tax returns, financial statements, business licenses and a business plan.

5. Apply for financing

After you’ve gathered your documentation, you’ll need to submit a formal application. Depending on the lender, you might be able to complete the full application process online while other lenders require you to discuss your options with one of the company’s loan specialists.

6. Get your funds 

If you’re approved, the lender will have you sign a loan agreement before the funds are disbursed. You might get your funds as soon as the same or next business day, depending on the lender. 

Alternatives to a long-term business loan

While long-term business loans are a popular financing option for many businesses seeking stability and extended repayment periods, there are alternative financing solutions that could be more suitable depending on your business’s needs, financial health and growth stage. Some options to consider include:

• Business line of credit: If you prefer flexible access to a revolving credit line, a business line of credit could be a good choice. With this option, you can borrow as needed and will pay interest only on the amount you use. 
• Short-term business loan: A short-term business loan will generally have a repayment term of two or fewer years. This can be ideal for businesses that need quick funding for immediate needs.
• SBA loan: The Small Business Administration (SBA) backs these loans, which in turn reduces the risk for lenders. Because of this, SBA loans can come with more competitive rates and terms compared to traditional business financing.
• Business credit card: If you need to cover small, routine expenses, a business credit card can be a good choice. Some cards also provide rewards and perks to help you build business credit. However, you can’t charge some types of business expenses, such as inventory and payroll.
• Invoice financing: With this option, you’ll sell your unpaid client invoices to a factoring company in return for a fee. The company will be responsible for collecting client payments for you, and you’ll get an advance on the amount you’re owed. While this can help with cash flow, you’ll lose some of your funds to the interest and fees charged by the factoring company. 
• Personal loan for business use: A personal loan can be a viable option for sole proprietorships or startups without an established business credit history. Note that many personal loan lenders don’t allow their loans to be used for business purposes. However, others do, such as Upstart . 
• Angel investors or venture capital: These funds are investments from individuals or firms in exchange for equity in the business. If you have a startup with high growth potential, working with an angel investor or venture capitalist could be worth pursuing.

Which is right for your business’s needs? Business loans vs. business lines of credit

Frequently asked questions (FAQs)

The longest term for a private business loan is generally 10 years — though maximum terms will vary depending on the lender. Government-backed SBA loans, on the other hand, sometimes come with longer terms, depending on the type of loan. For example, you could have up to 25 years to repay an SBA 7(a) loan for real estate.

Yes, it’s possible to get a business loan with a 10-year term. However, remember that terms vary by lender, and you might have to meet more stringent requirements to qualify for the longest terms.

While lenders generally don’t offer 30-year repayment terms on business loans, you might be able to negotiate a longer term with your lender if you’ve been approved. For a successful negotiation, you’ll likely need strong credit and a well-established business history. You might also need to offer collateral to secure a longer term. You might also have an easier time negotiating with a lender you’ve previously worked with, provided you were a good customer. 

Interest rates on long-term business loans vary by lender. As of Feb. 7, 2024, the average rate for a business term loan ranges from 8.49% to 36%. Remember that your rate will also depend on your creditworthiness, market conditions and other factors.

The average term of an SBA loan varies by program. For example, SBA 7(a) loan terms extend up to 10 years for equipment, working capital or inventory, but they can range up to 25 years for real estate. SBA 504 loans are also available for up to 25 years.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Kiah Treece is a small business owner and former attorney with extensive experience in business and consumer finance. She focuses on demystifying debt so individuals and business owners can take control of their finances. Her work has been published on Forbes Advisor, Investopedia, The Spruce, Rolling Stone, Treehugger and more.

Ashley is a USA TODAY Blueprint loans and mortgages deputy editor who has worked in the online finance space since 2017. She’s passionate about creating helpful content that makes complicated financial topics easy to understand. She has previously worked at Forbes Advisor, Credible, LendingTree and Student Loan Hero. Her work has appeared on Fox Business and Yahoo. Ashley is also an artist and massive horror fan who had her short story “The Box” produced by the award-winning NoSleep Podcast. In her free time, she likes to draw, play video games, and hang out with her black cats, Salem and Binx.

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How to Start a Loan Business

Starting a loan business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful loan business.

Importantly, a critical step in starting a loan business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Loan Business :

• Choose the Name for Your Loan Business
• Develop Your Loan Business Plan
• Choose the Legal Structure for Your Loan Business
• Secure Startup Funding for Your Loan Business (If Needed)
• Secure a Location for Your Business
• Register Your Loan Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Loan Business
• Buy or Lease the Right Loan Business Equipment
• Develop Your Loan Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Loan Business
• Open for Business

1. Choose the Name for Your Loan Business

The first step to starting a loan business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your loan business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your loan business.

2. Develop Your Loan Business Plan

One of the most important steps in starting a loan business is to develop your loan business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise money for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your loan company.
• Company Overview – this section tells the reader about the history of your loan business and what type of loan business you operate. For example, are you a secured loan, unsecured loan, home equity loan, or personal loan business?
• Industry Analysis – here you will document key information about the loan industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your loan business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your loan business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your loan business.

Next you need to choose a legal structure for your money lending business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the business owner and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a loan business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a loan business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a loan business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your loan business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

4. Secure Startup Funding for Your Loan Business (If Needed)

In developing your loan business plan , you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a loan business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a loan business that they believe has high potential for growth.

5. Secure a Location for Your Business

There are a few key things you’ll want to consider when choosing a location for your private lending business. You’ll want to think about the demographics of the area, as well as the availability of potential customers. You’ll also want to make sure that the location is zoned for a business like yours.

Another important factor to consider is competition. You’ll want to find an area where there aren’t already too many loan companies competing for customers. 

In addition, you’ll want to make sure there is easy access to roads and highways in the area of the location. Finally, the property itself should have enough room for you to set up your office and meet with clients.

6. Register Your Loan Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your loan business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your own loan business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing business loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

The licensing requirements to start a loan business vary by state. You may need a business license, a loan broker license, and a credit services organization license. Make sure to check with the state where you plan to start your business for specific details and requirements. 

10. Get Business Insurance for Your Loan Business

There are a multiple types of insurance that you will need to have in order to operate a loan company.

Some business insurance policies you should consider for your loan business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Loan Business Equipment

To run a loan business, you need some basic equipment including a computer with internet access, a phone, and a fax machine. You will also need a printer to print out loan contracts.

12. Develop Your Loan Business Marketing Materials

Marketing materials will be required to attract and retain customers to your loan business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your loan business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional loan business website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your loan business.

13. Purchase and Setup the Software Needed to Run Your Loan Business

The software you’ll need to run a loan business include a loan origination system (LOS), a loan processing system, and a loan servicing system. 

The loan origination system is the front end of your company, where borrowers fill out forms, provide documentation, and undergo review for credit. The loan processing system records the information associated with the loans you make—things like origination fees, interest rates, credit limits, and payments received. There’s also a back-end system that manages your borrowers—collecting payments and insurance premiums as well as servicing loans each month.

14. Open for Business

You are now ready to open your loan business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Ultimate Business Plan in 1 Day!

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

How to Start a Loan Company FAQs

Is it hard to start a loan business.

It is not hard to start a loan business if you familiarize yourself with the industry. In today’s competitive business environment, running a loan service company can be daunting and expensive. The key is building relationships with the right people so that your brand name increases in popularity. When this happens, you will find it easier to connect with potential customers and grow your business as well as prospects for investors who are looking for companies for investment capital.

How can I start a loan company with no experience?

There are a few ways to start a lending business with no experience. One way is to partner with an existing company that offers loans. Another way is to start your own company and provide loans to people who need them.

To start your own company, you'll need to do some research on the best way to offer loans. You'll also need to create a business plan and get funding for your business. Once your business is up and running, you'll need to find customers and make sure they're happy with your services.

If you're not sure how to start a loan business, there are a lot of resources available online and in libraries. You can also talk to someone who's already in the loan business to get advice.

What type of loan business is most profitable?

There is no definitive answer to this question, as the profitability of a loan business will vary depending on the type of loan products offered, the target market, and the level of customer service provided. However, short-term and payday loans are some of the most profitable loan products. They tend to have low default rates, and borrowers can complete their repayments within a short period. Therefore, money lenders get their money back faster.

How much does it cost to start a loan business?

The cost of starting a loan business varies depending on the services you offer as well as the physical location of your business. The startup costs for loan businesses typically include the cost of establishing your company, hiring employees, and developing a marketing strategy.

What are the ongoing expenses for a loan business?

The ongoing expenses related to businesses offering loans can vary based on the size of the business and whether it is a traditional brick-and-mortar organization or an online lender. Typically, ongoing expenses will be higher for brick-and-mortar establishments due to the need to pay for rent, utilities, and maintenance of the office space. Administrative fees are common, along with the cost of maintaining loan books and employee salaries.

How does a loan business make money?

A loan business makes money by lending money and charging interest on the loans it issues. It also may charge other fees, such as origination or late payment fees. Another way for a loan business to make money is by trading loans—buying and selling them with other business owner s or financial institutions.

Is owning a loan business profitable?

Yes, owning a loan business can be profitable. One reason is that there is a large potential market for loans. In addition, the interest rates vary widely and can be quite high, which can result in sizable profits. Furthermore, the business can be automated to a certain extent, which can further reduce costs and improve profits.

Why do loan businesses fail?

There are a number of reasons why other lenders may fail. One reason is that the company may be unable to generate enough revenue to cover its costs and repay its loans. Additionally, the company may have insufficient funds to cover potential loan defaults. Poor management and fraud are also common reasons for loan business failures.

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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.

Debt consolidation is when you take out one loan and use it to pay off other debts that you have, leaving you with one monthly payment and interest rate. This can help you manage your debt more efficiently, and in some cases, reduce the total amount of inter rest you'll pay if the new loan's APR is lower than.

Generally, you'll need a personal loan for debt consolidation, which means replacing multiple loans with a single loan instead.

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• LightStream Personal Loan : Best for good to excellent credit
• Upgrade Personal Loan : Best for fast funding
• SoFi Personal Loan : Best for high balances
• Avant Personal Loan : Best for bad credit 
• Payoff Loan™ : Best for fair credit
• Wells Fargo Personal Loan : Best for loan options

Compare the Top Debt Consolidation Loans

0.50% discount on regular rates with AutoPay

7.99% 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

Get $200 when you open a Rewards Checking Plus account and make 3 debit card transactions

8.49% to 35.99%

$1,000 to $50,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Small minimum loan amount
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Quick access to funds
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low minimum credit score
• con icon Two crossed lines that form an 'X'. Origination and late fees

Upgrade is a solid lender if you can qualify for its lowest interest rate. But if your credit isn't in great shape, you may be able to find a better deal elsewhere.

• Loan amounts range from $1,000 to $50,000
• Loan term lengths range between 2 to 7 years
• You can get your money within one business day after your loan is reviewed and approved
• Loans made by Upgrade's lending partners

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.

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

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

Relationship discount of 0.25%

8.49% to 24.49% (with relationship discount)

$3,000 to $100,000

Undisclosed

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Large maximum loan amounts
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Discounts for current customers
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Established brick-and-mortar lender
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No origination fee or prepayment penalty
• con icon Two crossed lines that form an 'X'. Significant late fees
• con icon Two crossed lines that form an 'X'. History of mismanaging customer information
• con icon Two crossed lines that form an 'X'. No online applications for non-customers

Wells Fargo Personal Loan are a good choice if you need a significant amount of cash, as you can borrow up to $100,000 with the lender. However, if you're not a current customer, you can't apply for a personal loan without visiting a branch.

• Loan amounts range from $3,000 to $100,000
• Term lengths range from 1 to 7 years
• Rate discounts to customers who have a checking account with the bank and who make their loan payments automatically through that account
• Non-customers must apply by visiting a branch and talking with a banker
• Loans made by Wells Fargo, member FDIC

How to Choose a Debt Consolidation Loan

The main benefits of consolidating debt are streamlining your debts into a single account with one monthly payment and reducing the total amount of interest you'll owe.

When shopping for a debt consolidation loan, look for an APR that is lower than the average you're paying on the debt you want to consolidate. If you can't qualify for a lower rate, a debt consolidation loan might not be a good choice for you.

Also consider the loan amounts, associated fees and penalties, as well as a lender's credit score and other eligibility requirements when choosing a debt consolidation loan.

Top Debt Consolidation Loans of 2024

Personal Finance Insider's mission is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product, we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don't have to.

Best for good to excellent credit: Lightstream Personal Loan

Lightstream is a highly regarded lender for many loan types, and has been a top pick across Insider's coverage of the best personal loans and best auto loans . However, this lender only works with borrowers with good or better credit, with a minimum credit score requirement of 660. 

LightStream offers consistently low personal loan interest rates , though its minimum interest rate for debt consolidation is higher than its typical personal loan's interest rates. However, this lender does not have any prepayment or origination fees. Same-day funding is available with LightStream. 

Watch out for:  Maximum loan amount limits. Only borrowers with excellent credit can borrow the $100,000 maximum, and anyone without excellent credit may not qualify for the full amount.

LightStream defines excellent credit as an account with five or more years of credit history, stable and sufficient income for debts, and a variety of credit history with little or no credit card debt. If you're looking for a debt consolidation loan, chances are you have a significant amount of debt, and may not fit these qualifications.

Additionally, LightStream doesn't have a way to pre-qualify online. You'll have to apply for the loan to find out exactly what your rates and terms could look like, which could make comparison shopping difficult. 

LightStream Personal Loan Review

Best for fast funding: Upgrade Personal Loan

Upgrade is great for fast cash because it allows you to get your money within one business day after your loan is reviewed and approved. 

You're also able to get a loan for as little as $1,000, which is less than many of the other competitors on our list. It could be a good choice if you only have a small amount of debt you need to consolidate.

What to watch out for:  Origination and late fees. Your origination fee will be late fee of up to $10 if you don't make a full payment within 15 days of your due date.

Upgrade Personal Loan Review

Best for high balances: SoFi Personal Loan

A SoFi personal loan is the best option for anyone with a high balance, as this lender makes debt consolidation loans of up to $100,000. Debt consolidation loans from this lender are comparable in rates to those offered by LightStream, but SoFi offers higher loan limits to all applicants, whereas LightStream only allows some borrowers to borrow up to $100,000. Similarly, SoFi doesn't have any application or prepayment fees as well as doesn't require an origination fee. 

SoFi offers unique features like unemployment protection, which could put loans in forbearance for up to three months if you find yourself out of work. 

Watch out for:  Stringent requirements. SoFi personal loans have a minimum credit score of 680. According to NerdWallet, the average income among borrowers is over $100,000.

SoFi Personal Loan Review

Best for bad credit: Avant Personal Loan

Getting a loan with bad credit , whether to consolidate debt or for something else, can be expensive, or hard to qualify for. An Avant personal loan is the best bet for borrowers with poor credit, requiring a minimum credit score of 600.

Compared with other personal loan lenders offering debt consolidation loans for bad credit borrowers, Avant's terms are the most generous. While there is an administration fee, it could be lower than competitors' fees with a cap up to 4.75% in administration fees with an undisclosed late fee and returned payment fee. Avant also has the advantage of offering fast personal loan funding .

Watch out for:  High rates with a low credit score. While Avant is accessible to borrowers with poor credit scores, approval might go hand in hand with high interest rates on your loan.

Avant Personal Loan Review

Best for fair credit: Happy Money Personal Loan

In the fair credit range, it can be tough to qualify for a personal loan with reasonable interest rates — many lenders have a minimum of 660 or 680. However, a Happy Money Payoff Loan™ could be a good option for people with credit scores as low as 640. Interest rates are comparable to those offered by LightStream and SoFi, but this lender has less stringent requirements. 

Compared with competitors Prosper and Best Egg , which both have the same 640 minimum credit score requirement, Payoff's interest rates are capped lower, and could have lower origination fees. 

Watch out for: Origination fees. Payoff offers loans with a 0% to 5% origination fee. Competing lenders Prosper and Best Egg charge 1.00% to 7.99% and 0.99% and 5.99% origination fees, respectively. The better deal will depend on your credit score, income, and repayment term.

Happy Money Personal Loan Review

Best for loan options: Wells Fargo Personal Loan

Flexibility makes Wells Fargo personal loan a top contender for best personal loans for debt consolidation. Wells Fargo separates debt consolidation loans from personal loans, but the interest rates are the same.

Benefits include competitive interest rates and an autopay discount of 0.25% if payments are made from a Wells Fargo account . For unsecured personal loans, the most common type for debt consolidation, there are no origination or prepayment fees.

Wells Fargo can send your loan funds to your Wells Fargo bank account, or to a credit account outside of Wells Fargo to pay down your debts directly. 

Watch out for:  Wells Fargo's history with data security and compliance. The bank has faced several federal penalties for improper customer referrals to lending and insurance products, and security issues tied to creating fake accounts several years ago. 

Wells Fargo Personal Loan Review

Which Debt Consolidation Loan Lender Is the Most Trustworthy?

We've compared each institution's Better Business Bureau score to give you another piece of information to choose your lender. Whether you're considering a $5,000 loan or a $10,000 loan , a trustworthy lender can improve your loan experience. The BBB measures businesses based on factors like their responsiveness to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score:

With the exception of Wells Fargo, our top picks are rated A+ 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 complete information possible. 

Wells Fargo is currently rated an F by the BBB due to government actions against the business and a failure to respond to 14 complaints. Most recently, the Consumer Financial Protection Bureau in December 2022 ordered Wells Fargo to return $2 billion to customers and pay a $1.7 billion penalty for legal violations involving auto loans, mortgages, and deposit accounts. The bank illegally charged fees and interest penalties on auto and mortgage loans. Additionally, it misapplied payments to those loans for many customers. 

If you're uncomfortable with this history, you may want to use one of the other personal loan lenders on our list.

How to Qualify for a Personal Loan for Debt Consolidation

Qualifying for a debt consolidation loan is the same as it is for most other kinds of personal loans. 

Generally, lenders require a credit score in the mid-600s, although some will accept borrowers with lower scores. Remember, though, that with a lower credit score you'll pay a higher interest rate.

In addition to checking your credit score, debt consolidation companies will also need proof of your employment and ability to repay in order to determine eligibility. They will also check your debt-to-income ratio to make sure you haven't borrowed more than you can feasibly pay back.

Most lenders will allow you to prequalify for a loan, which allows you to compare interest rates and terms without affecting your credit score. 

How to Apply for a Debt Consolidation Loan

After you've gotten prequalified with several lenders, compare their offers and choose the one that best suits your needs. To complete the  full loan application process you'll need a significant amount of documentation, including things like: 

• Pay stubs/proof of income
• The last couple years of tax returns
• Documentation of 401(k)s and other financial accounts
• Rent/mortgage history
• Proof of collateral, if you're pursuing a secured loan

Get these basics in order before applying for the loan, in order to speed up the process. You can apply for most loans by filling out a form online.

If you are approved, the lender will send you the final loan documents to sign off on. These include all the details such as the interest rate, the amount of time you have to pay it off, the amount you're borrowing, the monthly payments, and any fees. Make sure you fully understand all of it before signing for the loan.

Alternatives to Debt Consolidation Loans

If you're looking for a debt consolidation loan because your credit cards carry high APRs, it's worth your time to consider some alternatives .

One often underutilized strategy is to simply ask your credit card company for a lower rate. There's no guarantee that they'll agree. However, they may well do so, especially if you've been diligent about payments. You can also ask about upgrading your credit card, which may come with a lower APR and other perks. 

You may also be able to get a lower rate by transferring your balances to a different credit card. Cards designed for this purpose often come with an introductory 0% APR period that can last anywhere from 12-18 months. Tackling your debt head-on using strategies such as the avalanche and snowball methods is another alternative.

Debt Consolidation Loan Frequently Asked Questions

Personal loans are the most common type of loan used for debt consolidation. Other options for consolidating debt include a  home equity loan , a home equity line of credit (HELOC), and a balance transfer credit card .

When you take out a debt consolidation loan, the funds are used to pay down the debts you have with multiple lenders, leaving you with a single monthly payment to make. It does not erase your debt, and you might end up paying more over the long term even if  you end up paying less each month on the consolidation loan.

Your credit will often be boosted in the long run if you consolidate your debt because it can reduce the amount you owe and lower monthly minimum payments, which all affect your credit score. With a debt consolidation loan, you can benefit from a lower interest rate.

Why You Should Trust Us: Our Experts for Choosing the Best Debt Consolidation Loan

We consulted loan and financial planning experts to inform these picks and give their insights into finding the best loans for your needs. You can read their advice at the bottom of this post.

• Andre Jean-Pierre , senior wealth advisor and managing director at Aces Advisors
• Forrest McCall , founder of Don't Work Another Day
• Fred Winchar , CEO and co-founder at MaxCash
• Ryan Wangman , loans reporter at Personal Finance Insider

Our Experts' Advice on Choosing the Best Debt Consolidation Loan

Generally, what makes a personal loan good or not good.

Andre Jean-Pierre:

"One of the most important factors to consider in a personal loan is the interest rate. Because personal loans are typically unsecured, they usually carry higher interest rates than secured lending options. However, if a person has a strong credit profile, a personal loan can carry a lower APR than other unsecured sources of financing such as credit cards."

Forrest McCall:

"One of the best ways to use a personal loan is to pay off other high-interest debts like credit card debts. Because you can often lock in lower rates than a revolving line of credit like a credit card it can be a smart decision for your finances and save you thousands in interest payments over time."

How Should a Borrower Decide if They Should Take Out a Personal Loan?

Fred Winchar:

"Whether or not to take a personal loan depends on if one can afford it. The purpose of the loan and the value that comes with it is of importance to note. In most cases, it is beneficial to use the loan to invest in a project that can bring extra income or savings."

Ryan Wangman: 

"Borrowers should carefully consider alternatives to personal loans before taking one out. Personal loans can come with high interest rates, especially for borrowers with poor credit. If you can't fit those monthly payments into your budget, steer clear of the loan."

Methodology

To find the best personal loans for debt consolidation, we combed through the fine print and terms of about a dozen personal loans to find the ones that were best suited to help with consolidating debt. We considered four main features: 

• APR range: For the most help with debt payoff, a personal loan for debt consolidation needs to have lower interest rates than the credit card or other debts you're consolidating. We looked for the loans that had the lowest rates possible for each credit range and purpose. The average credit card interest rate was 16.65% in the second quarter of 2022, so we focused on loans that had the potential to beat this. 
• Appropriate loan amounts:  We looked for personal loans that had the most variety in loan amounts. According to loan comparison site Credible , the median amount of debt consolidated in May 2020 was $18,000. To benefit the most borrowers, we included personal loans with maximum limits over $10,000. 
• Minimum credit score requirements: Where available, we considered the minimum credit score requirements for each company. We considered loans for excellent, fair, and poor credit, grouping loans into categories based on these credit score requirements.
• Fees:  We considered fees like origination or administrative fees in our decisions, looking for loans with the fewest or lowest fees. None of the best loans listed have prepayment penalties. 
• Nationwide availability: We only considered loans with availability in most or all 50 US states. 

See our ratings methodology for personal loans »

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.

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Refunds for Benefytt customers who paid for health plans and products

Did you pay  Benefytt , which also did business as “MyBenefitsKeeper,” for a health plan or product that didn’t deliver the comprehensive insurance coverage the company promised? You might be getting some of your money back.

The FTC will return nearly $100 million dollars to Benefytt customers who paid for health plans the FTC says were falsely marketed as comprehensive health insurance or an “Obamacare” plan under the Affordable Care Act (ACA).

Here’s what to know about refunds:

• Customers who paid Benefytt $1,000 or more between 2017 and 2022 will get some money back. Checks will be mailed automatically and should arrive within the next two weeks.
• Cash or deposit the check as soon as possible. Refund checks expire after 90 days. 
• For more information or questions, call the refund administrator, Epiq Systems, at 888-574-3126.
• The FTC never requires you to pay money or give account information to cash a refund check. Anyone who contacts you and says they’ll help you file for a refund or get your money back — if you pay them first — is a scammer.

Before you sign up for health coverage or products:

• Compare plans, coverage, and prices at a trusted source .  HealthCare.gov and state marketplaces are the first stop for information about comprehensive, ACA-compliant health insurance coverage.
• Find out more about the seller.  Ask for the name of the agent and the agency that's offering you a plan. Search online for the names plus “complaint,” “scam,” or “fraud.” Read what others are saying.
• Check with your  state insurance commissioner’s office  to see if they have a license and find out if there are complaints. If they don’t have a license, what they’re selling is not insurance.

Resist pressure to make a decision on the spot. Legitimate health plans won’t pressure you to make a decision on the spot, and they’ll always give you a chance to compare their plan with other options.

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I had over $15k in bills that I am being told to pay because they did not pay them and money that I paid towards and beyond the "deductible" for services and then was stuck. I spoke with several attorneys but nobody wanted to discuss.

As much as I appreciate the refund, 124.13. It doesn't touch the amount owed to the hospital. I do believe we still owe 37,000.00. Nor the premiums paid for nothing. The way I see it...is the big wigs of this scam, took our money and spent it on themselves. Sell everything they have and there families have to repay these people us. I'm sick over this debt of ours.

I have given them $15,184.80 in the past 10 years too my benefit keeper. I should be getting a big refund for this scam

ALTTHOUGH IM HAPPY THAT THIS WS NOTICED AND THE COMPANY WAS PUNISHED IT DOESNT MAKE UP FOR THE $10,000 THAT WAS LOST WITH THIS COMPANY IN BOGUS COVERAGES AND CLAIM ...$340 IS WHAT I GOT

In reply to ALTTHOUGH IM HAPPY THAT THIS… by TAYLOR ATCHISON

My refund was $197 even though I paid them over 3 years!

I've been paying for a Medicare plan I did not SIGNUP for. I NEVER had access to the company, the card, or the benefit letter. The company has many products listed that they deal with...and to even find the address and proper phone number has been a nightmare. I'm in process of reporting to FTC as my bank keeps getting mislead (3x s). Wish me luck $13,000.+ Has been deducted in total.

In reply to I've been paying for a… by EDrach.

Report Medicare fraud to Medicare at 1-800-MEDICARE (1-800-633-4227).

They are still billing me and can't get anyone on the line to cancel

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Moscow-City: 7 surprising facts about the Russian capital’s business center

1. Guinness World Record in highlining

The record was set in 2019 by a team of seven athletes from Russia, Germany, France and Canada. They did it on September 8, on which the ‘Moscow-City Day’ is celebrated. The cord was stretched at the height of 350 m between the ‘OKO’ (“Eye”) and ‘Neva Towers’ skyscrapers. The distance between them is 245 m. The first of the athletes to cross was Friede Kuhne from Germany. The athletes didn't just walk, but also performed some daredevil tricks. Their record is 103 meters higher than the previous one set in Mexico City in December 2016.

2. Domination of Europe's top-10 highest skyscrapers

7 out of 10 Europe’s highest skyscrapers are located in Moscow-City. Earlier, the  ‘Federation Tower’ complex’s ‘Vostok’ (“East”) skyscraper was the considered the tallest in Europe.

Left to right: the lower of the ‘Neva Towers’ (296 m), Commerzbank Tower in Frankfurt (300 m), Gorod Stolits (“City of Capitals”) Moscow tower (302 m), Eurasia tower (309 m), The Shard’ skyscraper in London (310 m), Mercury City Tower (339 m), Neva Towers (345 m).

However, in 2018, the construction of the 462 meter tall ‘Lakhta Center’ in Saint-Petersburg was completed, pushing ‘Vostok’ (374 m) into 2nd place. The 3rd place is taken by OKO’s southern tower (354 m).

3. The unrealized ‘Rossiya’ tower

If all the building plans of Moscow-City were realized, the ‘Lakhta Center’ in St. Petersburg wouldn't have a chance to be Europe's highest skyscraper. Boris Tkhor, the architect who designed the concept of Moscow-City, had planned for the ‘Rossiya’ tower to be the tallest. In his project, it was a 600 meter tall golden cylindrical skyscraper ending with a spire that was inspired by traditional Russian bell towers. Then, the project was reinvented by famous British architect Sir Norman Foster. He had designed ‘Rossiya’ as a pyramid ending with a spire. The skyscraper itself would have been 612 meters tall, and the height including the spire would have reached 744,5 meters (for comparison, the ‘Burj Khalifa’ in Dubai, UAE, would have been just 83,5 meters taller). Unfortunately, the investors faced a lot of economic problems, due to the 2008 financial crisis, so the ‘Rossiya’ skyscraper was never built. A shopping mall and the ‘Neva Towers’ complex was constructed at its place in 2019.

4. Changed appearance of ‘Federation Tower’

In its first project, the ‘Federation Tower’ was designed to resemble a ship with a mast and two sails. The mast was to be represented by a tall glass spire with passages between the towers. It was planned to make a high-speed lift in it. The top of the spire was going to be turned into an observation deck. But the ship lost its mast in the middle of its construction. Experts at the Moscow-city Museum based in the ‘Imperia’ (“Empire”) tower say, that the construction of the spire was stopped, firstly, due to fire safety reasons and secondly, because it posed a threat to helicopter flights – the flickering glass of the spire could potentially blind the pilots. So, the half-built construction was disassembled. However, an observation deck was opened in the ‘Vostok’ tower.

5. Open windows of ‘Federation Tower’

We all know that the windows of the upper floors in different buildings don’t usually open. Experts say that it’s not actually for people’s safety. Falling from a big height is likely to be fatal in any building. The actual reason is the ventilation system. In a skyscraper, it’s managed with a mechanical system, and the building has its own climate. But in the ‘Zapad’ (“West”) tower of the ‘Federation Tower’ complex, the windows can open. The 62nd and last floor of the tower are taken up by a restaurant called ‘Sixty’. There, the windows are equipped with a special hydraulic system. They open for a short period of time accompanied by classical music, so the guests can take breathtaking photos of Moscow.

6. Broken glass units of ‘Federation Tower’

The guests of the ‘Sixty’ restaurant at the top of the ‘Zapad’ tower can be surprised to see cracked glass window panes. It is particularly strange, if we take into consideration the special type of this glass. It is extremely solid and can’t be broken once installed. For example, during experiments people threw all sorts of heavy items at the windows, but the glass wouldn’t break. The broken glass units of ‘Zapad’ were already damaged during shipment . As each of them is curved in its own way to make the tower’s curvature smooth, making a new set of window panes and bringing them to Russia was deemed too expensive . Moreover, the investors had financial problems (again, due to the 2008 financial crisis), so the ‘Vostok’ tower even stood unfinished for several years. Eventually, the cracked window panes were installed in their place.

7. The highest restaurant in Europe

‘Birds’, another restaurant in Moscow-City, is remarkable for its location. It was opened at the end of 2019 on the 84th floor of the ‘OKO’ complex’s southern tower. Guests at the restaurant can enjoy an amazing panoramic view at a height of 336 meters. On January 28, the experts of ‘Kniga Recordov Rossii’ (“Russian Records Book”) declared ‘Birds’ the highest restaurant in Europe, a step toward an application for a Guinness World Record.

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Money blog: What makes up the cost of a £6 pint - and how much is profit?

The cost of draught lager has gone up nearly 30% since January 2019, according to the Office for National Statistics. Read this and more in the Money blog, your place for personal finance news. Leave a comment on stories we've covered, or a question for our experts, in the form below.

Thursday 4 April 2024 13:21, UK

• British Savings Bonds announced in the budget go on sale - but experts aren't convinced
• What makes up the cost of a £6 pint - and how much is profit?
• How to make your money work harder while it's sat in your current account
• How much will your take-home pay increase this month with NI cut? Use our calculator
• 'Are they going to go around sniffing people?' Big Issue founder says government has 'lost the plot' over homelessness plan
• Eight big price hikes this week - and six boosts to Britons' pockets
• All the places kids can eat cheap or free this Easter

Ask a question or make a comment

Ted Baker is the latest in a string of high-street giants to call in administrators in recent years. 

But how does it affect you? 

Let's use Ted Baker as an example. 

Purchases and returns

You can still purchase online or walk into a Ted Baker shop and buy items, but you could run into trouble returning them. 

If the retailer stops trading, it may not be able to get your money back to you.

If that is the case, you would have to file a claim with Teneo (Ted Baker's administrator) to join a list of creditors owed money by Ted Baker – and even then there's no guarantee you'd get your money back.

You could also file a claim with your debit or credit card provider - but again, no guarantees. 

TL;DR: If you have one - use it as soon as possible. 

Teneo has made no changes to the way gift cards can be used at Ted Baker, but as is the case with all administrators, it can change the terms and conditions at will. 

As above, if you lose out on cash because of a company going into administration, you can raise it with the administrators themselves. 

Credits and debits

As we mentioned earlier, you can file a claim with your debit or credit card provider to recover lost funds - but how exactly does that work?

• Credit card:  If you bought any single item costing between £100-£30,000 and paid on a credit card, the card firm is liable if something goes wrong. If any purchase was less than £100, you may still be able to get your money back via chargeback
• Debit card:  Under chargeback, your bank can try to get your money back from Ted Baker's bank. However, be aware that this is not a legal requirement and it can later be disputed and recalled back to Ted Baker's bank

A US state is considering a bill giving employees the right not to respond to calls, emails and texts from their bosses outside of paid work hours.

The so-called "right to disconnect" would allow California's labour commission to fine employers for interrupting personal time, reports our partner network NBC News.

The bill makes exceptions for emergencies, scheduling and collective bargaining.

The state's Chamber of Commerce called the proposed legislation a step backwards for flexibility.

However, Professor Amira Barger told NBC the changes would help tackle an "epidemic of burnout" and were a "necessary adaptation" for the future of work.

The planned £15bn mega-merger of UK mobile networks Vodafone and Three is to face an in-depth investigation by the competition watchdog.

The Competition and Markets Authority confirmed it will launch a so-called Phase 2 probe after both firms told the regulator they would not be offering measures to ease its concerns ahead of the deadline, 2 April.

The CMA said last month that the tie-up could have a "substantial" impact on competition, warning it may lead to higher prices and reduced quality.

Read more in our full story .

School strikes over teachers' pay and funding could be staged in September, the leader of a teaching union has warned.

Daniel Kebede, general secretary of the National Education Union (NEU), the largest education union in the UK, did not rule out launching a ballot on walkouts for the autumn term.

Teachers at the NEU’s annual conference in Bournemouth will vote today on whether the union should "build capacity" to deliver national industrial action.

Ofgem is considering plans for rules on the use of artificial intelligence in the energy industry amid fears the technology could risk "tacit collusion", reports  The Times.

Algorithms that make pricing decisions for companies would make it more difficult to identify who is accountable when it comes to competition issues, the regulator said.

Customers also need to be protected from higher-risk AI used to help balance supply and demand that could cause power outages if they fail.

By Daniel Binns, business reporter

The FTSE 100 is up more than 0.4% this morning, after a rise in the price of gold boosted precious metal mining firms.

Also up is British fintech Cab Payments. Its shares have shot up 11% in early trading.

It comes after the firm secured a payment provider licence in the Netherlands, paving the way for it to expand in the country.

Meanwhile, the cost of oil continues to slowly creep up in the wake of investor concerns over the Middle East and Ukraine's attacks on Russian refineries.

A barrel of Brent crude is currently trading at just over $89 (£70).

The currency markets remain stable, with £1 buying you $1.26 US or €1.17, with the rates almost unchanged from yesterday.

Google is considering charging for premium AI-powered features, the Financial Times reports.

It would be the first time the tech giant put any core products behind a paywall, as it seeks to gain ground in the fast-moving AI space

The FT cited sources familiar with Google's plans as saying it could incorporate a generative AI-powered search engine in its subscription services, which already provide access to its new Gemini AI assistant in Gmail and Docs.

Google's traditional search engine would remain free of charge and ads would continue to appear alongside search results even for subscribers.

"We're not working on or considering an ad-free search experience. As we've done many times before, we'll continue to build new premium capabilities and services to enhance our subscription offerings across Google," the company told Reuters.

Google, which invented the foundational technology for today's AI boom, is locked in battle with two industry players that have captured the business world's attention - ChatGPT's creator OpenAI and its backer Microsoft.

Every Thursday we look at a different savings option, explain the pros and cons, and reveal the best deals on the market (see table below for that).  This week we're talking about the top interest-paying current accounts. Savings Champion founder Anna Bowes  writes...

From time to time there are plenty of incentives available to attempt to encourage people to switch their current accounts - but switching is not always necessary. There are also some current accounts that offer competitive interest rates, even if there's not a switching incentive. 

While not as prevalent as they have been in the recent past, interest-paying current accounts can offer some very competitive interest rates – especially bearing in mind that most current accounts offer no interest at all. In fact, according to the Bank of England, there is £253bn currently held in these non-interest bearing accounts.

These accounts are usually more complicated than a traditional savings account and there are a number of hoops to jump through and potential hazards to avoid, in order to get the returns on offer. 

Potential traps to look out for are: low maximum balances, introductory rates, monthly fees, a requirement to set up direct debits, a minimum amount to pay in each month and a minimum amount to maintain in the account.

All of these factors need to be taken into account when choosing an account and if you feel that you may fall foul of the rules, take a look at one of the alternatives that will suit your circumstances better. 

Setting up standing orders is an easy way to ensure you deposit and withdraw the qualifying amounts each month and can be effective in managing multiple current accounts. It may take a while to set it all up, but the rates on offer could make it worthwhile. It is also worth remembering that many of these accounts can be opened without having to switch your main current account. 

A final point to bear in mind is that some of these accounts give you access to exclusive savings accounts, which often pay competitive rates - especially true with regular savings accounts.

By Ollie Cooper, Money team

Many of us have noticed the price of pints creeping up in recent years. 

The cost of draught lager has gone up nearly 30% since January 2019, according to the Office for National Statistics.

The ONS says the cost of the average pint in Britain is £4.70 (it was £3.67 in January 2019), but many pubs frequently sell beers for over £5, £6 or even £7 in cities like London, Edinburgh and Brighton. 

The beer doesn't taste any different despite the increase in price - so where exactly does that £6-7 for a pint go? 

Sky News spoke with management at The Duke of Greenwich pub in Greenwich, London, for some insight. 

A pint of The Duke of Greenwich's eponymous lager costs £6 - but just 83p (about 13.8% of the cost to the consumer) is profit for the pub.

They pay the brewery £1.36 per pint and allow for 5% wastage - which people in the industry say is perhaps a little on the low side, given the number of top-ups and over-lively pints poured. 

Nearly 30%, or £1.76, of your £6 goes towards paying staff - with hospitality wages needing to rise given inflation, the national minimum wage and in order for pubs, restaurants and cafes to compete in the worsening inter-industry dogfight for employees. 

£1.16 may seem steep for rent and utilities per pint - but remember they aren't just paying for the building and the lights. They also need to wash your glass with very hot water using a dishwasher or glass cleaner, provide heating for punters, water for the bathrooms and electricity across the wider pub for bandits (aka trusty fruit machines), music and for that bloke at the bar to charge his phone. 

No one will need reminding that there's a cost of living crisis that affects pubs as much as everyone else. 

There's also beer gas that needs to be paid for. 

This goes some way towards explaining why pubs charge so much - they simply have to survive. 

More expensive means more profit, right?

As you go further up the scale, the trend continues. 

Despite a pint of Crush IPA by the Drop Project Brewery in Mitcham costing £1.80 more than the lager (£7.80), there's actually a decrease in the profit margin - from around 13.8% to around 12.7%. 

Less than £1 of that £7.80 is profit for the pub itself - and this is before we've accounted for extra expenses like refurbishments, cleaners, breakages, expired products, etc. 

While being aware of these facts may not make you wince any less when that card machine turns around, you will have a better idea of where that money is going. 

British Savings Bonds, which were announced in the budget, have gone on sale.

The bonds, issued by the Treasury-backed NS&I, offer a fixed rate for three years - and the rate has been revealed at 4.15%.

This has left experts feeling a little underwhelmed.

Savings Champion founder Anna Bowes gave us her view: "In essence, this is simply a re-issuance of the NS&I three-year Guaranteed Income and Guaranteed Growth bonds, rather than anything new or British.

"As was reported just after the budget and as is often the case with NS&I products, while the interest rate is not rock bottom it’s mid-table, so is likely to still be utilised, especially for those rolling over old bonds, and those with more than the FSCS limit of £85,000, because of course all cash held with NS&I is guaranteed by HM Treasury.

"NS&I is a trusted institution so will always be popular, but savers can earn quite a lot more if they shop around and perhaps choose a provider they are less familiar with."

The Guaranteed Growth Bond option is available at 4.15% and the Guaranteed Income Bond option has a rate of 4.07%.

Funds of between £500 and £1 million can be invested, with the money locked in for the duration of the three-year term.

The investments have 100%, Treasury-backed security, and are invested back into the country via government financing.

British Savings Bonds can be purchased online at nsandi.com .

Those looking for three-year deals can find a range of options with rates above 4.60% AER in the wider market, according to Moneyfactscompare.co.uk .

Bonds with shorter terms also offer higher rates, such as 5.25% AER for a one-year deal or 5.10% for a two-year deal.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk , said: "As it stands, savers can get an account that pays more than 5% on either an easy access account or fixed-rate bond. As has been evident, fixed rates on savings accounts are coming down, so the deals that sit towards the top of the market will likely be in high demand."

Bim Afolami, economic secretary to the Treasury, said: "This is a new opportunity for UK savers to benefit from the three-year fixed-rate British Savings Bonds knowing that their money is fully protected by HM Treasury.

"The bonds will help to grow the savings culture in the UK while providing cost-effective financing for the government."

More than one in three UK water employees has reported being verbally abused at work, according to GMB Union.

A survey of almost 1,300 staff found industry workers have been physically assaulted and unsafe working alone, the Guardian reported.

The survey comes after backlash to news of sewage dumping practices.

The government has declined to launch a public inquiry into Thurrock council's bankruptcy , the Financial Times reports.

Residents had petitioned for an investigation into the Conservative-run Essex council.

But minister for local government Simon Hoare said a best value inspection report published last year was an effective way to look into the issue.

Co-op is reintroducing the  remote wine-tastings  first piloted during lockdown.

Winemakers will host sessions to members each month over Zoom following demand from customers, according to the supermarket.

Participants will receive advance notice of which wines will be the subject of the tastings.

Superdrug has axed the cost of VAT from its own-brand sun care range.

The retailer says the products should be deemed a healthcare essential and not a beauty treatment, and believes all sun protection should be exempt from the 20% levy.

The UK government is coming under increasing pressure to remove VAT on all sun care after a rise in calls for donations of such products, with some having to go without sun protection completely. 

The reduction is expected to save consumers around £1m.

Jamie Archer, own brand director at Superdrug, said: "Sun cream is currently classed as a cosmetic product and therefore carries the VAT associated with it, making it unaffordable for some people.

"We believe that everyone should have access to the products that protect their health and wellbeing and at an affordable price. 

"Therefore, we're proud to support our customers by removing 20% from our sun care range for a second year."

The cut means Solait Sun Cream SPF50 (200ml) costs £3.59 and the Solait Kid’s Roll-on Sun Cream SPF50+ (75ml) £2.79.

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The spiraling 246m high Evolution Tower is located on plots 2-3 of Moscow-City high-rise business district on Presnenskaya Embankment of Moscow river. New multi-function center occupies the territory of 2.5ha in area, 2ha of which is a landscaped terraced civic plaza, the integral part of the new city piazza, the central open public space of Moscow-City business downtown.

ivic plaza includes 10m high ceremonial stairs (leading from embankment and pedestrian Bagration Bridge to the higher terraced levels) as well as landscaped areas with green lawns, trees, water features, travellators and feature lightboxes.

Evolution Tower

Location: Moscow, Russia

Typology: High-Rise, Office, Mixed-Use

Years: Construction 2011-2014

Status: Built

Height: 246m

Design team: GORPROJECT  (2011-2015), 

RMJM Scotland Ltd 

(original concept 2005-2007)

Under the piazza levels the 2-storey retail mall connects the Evolution Tower with metro station and pedestrian bridge over Moscow river, thus integrating the new development into the large Moscow-City district, the Europe's newest and most ambitious high-rise cluster (7 of 10 highest European skyscrapers ae located here), housing over 4 million square meters of office and retail areas with associated transport and engineering infrastructure.   

The Evolution Gallery mall houses food court and 6,000m2 family entertainment and educational center for various children activities (the first center of that kind in Moscow). 

The 82,000m2 office tower has 52 levels rotated 3 degrees each floor with overall twist reaching 156 degrees clockwise. With world’s largest innovative cold-bent glazing the tower façade provides seamless floating reflection that rotates the panoramas of Moscow skyline vertically, where the reflected clouds moving up enhance the dynamic visual impact of the twisted tower, an unprecedented optical effect in the world architecture.  The Crown with supporting steel structure made of two twisted arches provides the helipad at the very top as well as the open observation roof decks at Levels 51-52 featuring the best panoramas of Moscow riverside with views towards the historical center. 

From the very beginning the developer and architects have set an ambitious task to create a recognizable and symbolic tower, the new icon of contemporary Moscow.  The sculptural DNA-shaped twisting tower symbolizes the evolution spiral with the white façade ribbon wrapping over the roof in a form of 90-degree twisted infinity symbol, which speaks of philosophical concept of evolution and celebrates the development of human civilization. From spiraling onion domes of St. Basil to the iconic Tatlin Tower concept the Russian architecture was obsessed with idea of spiral. The simple and innovative design was based on principles of twisting square-shaped floor plates with vertical structural RC frame supported by a central core and 8 columns with continuous beams and 4 spiraling columns at the corners. 

The proposed structural scheme with cantilevered continuous RC beams and cantilevered floor slabs  picking up the overhangs from the twisted floor plates appeared to be simple, efficient and economical. The complex sculptural tower façade envelope was built using the innovative cold-bent glazing with flat double glazed units cold-formed in 3D within the aluminum frame under its own weight to avoid stepping in geometry. This approach appeared to be both more energy-efficient and more cost-efficient solution in comparison to the stepped curtain wall units previously applied in some twisted unitized facades. 

The multifunctional architectural glass by Guardian significantly reduces the solar gain whilst providing the double glazed unit thermal performance equal to standard triple glazed unit normally used in Moscow to withstand harsh winter conditions. The use of innovative TWIN elevators by ThyssenKrupp saved 2 shafts within the core (10 TWINs instead of 12 double-deckers in the original concept) and contributed to the overall project sustainability with lesser power consumption per passenger. Other sustainable design features include green roofs over the retail mall and integrated coil floor heating under landscaped civic piazza levels using the return water in winter to melt the snow and ice for the safety of pedestrians. The reinforced concrete formwork by PERI, including self-climbing ACS formwork specially designed for the twisting corner columns, allowed to achieve the impressive speed of RC frame construction of 6 days per floor due to perfect site logistics by Renaissance Construction as main contractor. 

All innovative design solutions and optimizations secured the delivery of this fairly unique skyscraper within the project plan and almost within the budget of the standard ‘benchmark’ high-rise building. This turned out to be a major achievement of the design and construction teams. 

The organic twisting silhouette dominates on its background of extruded glass towers greatly contributing into the overall composition of the high-rise Moscow-City cluster. The development delivered a significant open public space on the landscaped roof of the retail mall, thus providing the perfect mix of business uses with public and social activities of the civic plaza and the mall with its food court and core family entertainment function. The synergy of that mix with large underground car-park complemented by the direct link to the metro station and pedestrian bridge as means of main public transportation secured the successful project completion with the recent entire tower acquisition. Bold shape and timeless aesthetics as added values brought by its unique architecture materialized in a commercial success of this project with the tower being fully acquired for corporate headquarters even in the context of oversupply in the Moscow office market. The outstanding quality of architecture and its fine detailing, state of the art building services and communications of Class A office Tower together with the highest level of transport accessibility  (direct access to metro station from the lobby, large car-parking, proximity to boat pier and helipads) make this property very attractive for tenants and visitors. The beautiful riverside panoramas from offices are complemented by green roof and water features of the large 2ha terraced civic piazza as the main recreational outdoor space with direct link from the office tower lobby. 

The highest quality of façade cladding, glazing, vertical transportation and MEP equipment from leading European and international suppliers provided the truly Class-A office environment with the luxury of minimalist spirit in the architecture of the new landmark on the Moscow skyline. Even before its completion the sculptural spiral of Evolution Tower, more often appearing in commercials, posters and magazines, became a new icon for modern Moscow as the symbol of its business ambitions and fast development. The Evolution Tower also became the monument to the courage of its developer (Snegiri Group) and investors, who built the great deal of trust with architects, engineers and contractors by investing their efforts and funds in a challenging adventure of designing and building the unique and innovative skyscraper for the capital of Russia. 

Evolution Reflections

Philipp nikandrov.

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Moscow-City – The Moscow International Business Center

• 3 years ago

Moscow-City is an iconic location for life and work in Russia’s capital. Enormous skyscrapers, business centers, the best restaurants and retail spaces – all this is concentrated in one place. The ultramodern Moscow-City towers are truly striking in their outward appearance, and the layout of the apartments inside and the fantastic views that can be seen from the higher floors are nothing short of impressive.

This skyscraper compound, often referred to as Moskva-City, is the Russian take on Manhattan, where businessmen strike multi-million dollar deals daily while ordinary life goes on next door. Its state of the art spaces offer the ultimate convenience. The infrastructure of this business district is so well-developed that anyone can find something interesting for themselves here: from residential apartments to boutiques, clubs, exhibitions and more.

When the foundations for the Moscow-City skyscrapers were laid, a special kind of concrete was used, the properties of which are amplified by many times compared to standard concrete. Even in the event of a plane crashing into one of the buildings, the structural integrity of the towers will be preserved.

The architects of the Moscow-City Business Center have created a unique locality that has integrated into itself the hub of the capital’s business life and a whole ensemble of historical monuments. Anyone can admire the beauty of these skyscrapers from within or without the compound. There are also a number of apartments for sale or rent available in the MIBC itself. But first, let’s have a look at some more interesting facts about the financial core of Russia’s capital.

• 1 How It All Began
• 2.1 Moscow-City Central Core
• 2.2 Tower 2000
• 2.3 Evolution Tower
• 2.4 Imperia Tower
• 2.5 Moscow Tower and St. Petersburg Tower
• 2.6 Steel Peak Tower
• 2.7 Federation Tower
• 2.8 Mercury City Tower
• 2.9 OKO Tower Complex
• 3.1 Afimall City Shopping Center
• 3.2 Bagration Bridge
• 3.3 Expocentre Fairgrounds
• 4 Renting and Buying Real Estate in Moscow-City

How It All Began

The history of Moscow-City goes all the way back to 1992. The government of Moscow at the time wanted to bring into existence its own skyscrapers like the ones in London or New York. And the idea caught on. In 1992 the project for the construction of the huge “Moscow-City” MIBC compound was enthusiastically approved, kick-starting the painstaking preparatory works. The original intention was that the skyscrapers would only house office space. However, as time went on, the towers began to welcome in ordinary residents who wanted to live on the territory of this business and finance hub.

Moscow-City is undoubtedly a city within a city. Its grandeur is mind-boggling. It is perfect in every way: from location to infrastructure. And today, anyone can get a feel of the atmosphere of the “capital city” of Russia’s business world – many of the apartments in Moscow-City are available for rent. Any citizen of Russia and even nationals of other countries can make use of these offers.

What It’s Like in 2021

Today Moscow-City is not just a magnificent and fascinating sight, but also a real hub for the work, life and leisure of thousands. Its infrastructure is organized in such a way that there is no need to leave the territory of the “city within a city” at all. This business district contains everything one may need for work and recreation. And if one does decide to venture out into the larger metropolis, the MIBC’s three subway stations make this remarkably simple to do.

Moscow-City stands on the Presnenskaya Embankment . Each of the buildings in the district has a name, which simplifies its identification. Some of the buildings form complexes that are united under one name, such as the Neva Towers and the Naberezhnaya Tower complex of two skyscrapers and one high rise. There are a total of 16 towers in the MIBC, of which the most popular are:

• Moscow-City Central Core;
• Tower 2000;
• Evolution Tower;
• Imperia Tower;
• City of Capitals (Moscow Tower and St. Petersburg Tower);
• Steel Peak Tower;
• Federation Tower;
• Mercury City Tower;
• OKO Tower Complex.

Moscow-City Central Core

This is the most complex building within the MIBC compound. Its total floor area is a whopping 1 476 378 sqft (450 000 m²). It consists of two massive parts, each of which boasts a truly impressive infrastructure. The underground part includes 3 Moscow Metro stations, a parking lot for automobiles and a shopping mall. The aboveground part houses a concert hall and a hotel.

Tower 2000 is a skyscraper having 34 stories. Its total floor area is 200 318 sqft (61 057 m²), most of which is office space. The key feature of this skyscraper is its direct connection to the Bagration Bridge, which has its own shopping arcade. The tower has everything one may need while working here, including a large parking lot and several restaurants.

Evolution Tower

This elegant structure is 836 feet (255 m) high – that’s a whole 54 stories! The total floor area here is 554 462 sqft (169 000 m²). The Evolution Tower’s key feature is that it has its own Wedding Hall. This skyscraper houses large office spaces, a parking lot and several restaurants.

Imperia Tower

MIBC’s Imperia Tower is the undeniable focal point of the MIBC’s business life. Its height is 784 feet (239 m), which means one can hold conferences and resolve key business matters on the 59 th floor! And that really is amazing! The tower has everything: offices, hotels, restaurants and parking lots. But if you want a truly unforgettable experience, visit the viewing platform! It is situated on the 58 th floor and a simply astounding view of Moscow can be seen from it.

Moscow Tower and St. Petersburg Tower

The Moscow and St. Petersburg Towers are the chief representatives of the MIBC. The Moscow Tower has 76 stories and is 990 feet (302 m) high, while the St. Petersburg Tower has 65 stories and stands 843 feet (257 m) tall. Both towers offer fantastic views of the capital city.

Most of the floors of these two skyscrapers are taken up by luxurious sky apartments. There are also several recreational and entertainment centers, office spaces, restaurants, etc.

Steel Peak Tower

Also known as the Eurasia Tower of Moscow-City, this supertall skyscraper has a total of 680 912 sqft (207 542 m²) of floor space. Most of this is taken up by offices, and the rest – by residential quarters (around 65 616 sqft or 20 000 m²). The tower also houses a number of the greatest restaurants, studios and shopping centers.

Federation Tower

The Federation Tower is a complex of two skyscrapers, known as Tower East and Tower West. Tower East is the second highest building in Europe (the first is a skyscraper recently erected in the city of St. Petersburg). Its height is a colossal 1 223 feet (373 m) and that makes 95 stories! Tower West, on the other hand, is noticeably shorter at 794 feet (242 m).

The Federation Tower is a multifunctional complex.

Mercury City Tower

The Mercury City Tower skyscraper is widely known as one of the tallest buildings in Europe. Its height is 1 112 feet (339 m) and it has 75 stories. It is multifunctional by concept, holding within its walls shopping centers, offices and all kinds of other spaces. It is also possible to rent apartments here.

OKO Tower Complex

The OKO Tower Complex consists of two towers – the North Tower (49 stories and 803 ft or 245 m in height) and the South Tower (85 stories and 1 155 ft or 352 m in height).

Each of the MIBC’s tower complexes has its own recreational and entertainment areas, restaurants and parking lots. The top floors of most of these buildings contain luxurious fully-furnished apartments. At night, the towers shine with bright lights, while inside them the panoramic windows reveal astounding views of Moscow. This breathtaking view of the capital of Russia is why visiting Moscow-City is a must!

What Not to Miss

There are many interesting landmarks within the Moscow-City compound, but three of them are truly deserving of special attention:

• The Afimall City Shopping Center;
• The Bagration Bridge with two galleries and a shopping arcade;
• The Expocentre Fairgrounds.

Afimall City Shopping Center

The Afimall City Shopping and Entertainment Center is located in Moscow-City’s Central Core. It is divided into 4 zones, each with its own theme – one for every season of the year. The shopping center houses the biggest indoor fountain found worldwide. The height of this watery wonder is 118 feet or 36 meters.

The shopping and entertainment center contains everything one might expect from one of the largest centers of its kind:

• Retail brand stores;
• Exhibitions;
• Game rooms;
• and Restaurants.

The main recreational space is roofed with a giant transparent dome, which is an impressive sight to behold.

Bagration Bridge

Bagration Bridge with its upper and lower galleries has a shopping center all of its own and was the first structure to be built as part of the Moscow-City business district. Its lower gallery is a shopping arcade and its upper gallery is an open-air viewing platform with a spectacular view of the MIBC and the Moskva River. The hall of the bridge houses the 23 foot tall sculpture called “Tree of Life”. Having gone through the bridge via either one of its two galleries, a pedestrian would find themselves standing right on the Kutuzovsky Prospekt.

Expocentre Fairgrounds

The Expocentre Fairgrounds exhibition venue is located at the very heart of the capital. The first exhibition held at the Expocentre happened all the way back in 1959, much earlier than the MIBC was erected. Today it is the venue of many interesting events.

Exhibitions with very diverse themes are regularly held at this complex. An up-to-date schedule can be found on the official webpage of the Expocentre. The events can be free or fixed-price entry, depending on their type.

Renting and Buying Real Estate in Moscow-City

Moscow-City is not only a work and business hub, but also a residential neighborhood. Any citizen of Russia can rent or buy apartments or elite sky lounges here. The variety of residential real estate available inside the skyscrapers is impressive, including options for any pocket. The following buildings in the MIBC contain residential blocks:

This skyscraper has a mirror glass façade which reflects the passing clouds. Just imagine how beautiful that looks! Anyone can buy an apartment in the Federation Tower. Such properties are not only a good investment, but also a mark of prestige. The average price of residential real estate here is 45 million rubles for an apartment with a total floor area of 334 sqft (102 m²). The average price of a square meter (3.28 square feet) is in the range of 650 to 700 thousand rubles. There are two- and three-room apartments available in the Federation Tower, each with its own loggia. As for rent, the minimum price of one month’s stay in a three-room apartment in this skyscraper is 300 000 rubles per month.

The Mercury City Tower skyscraper welcomes citizens from all parts of Russia. This building is no less tall than the world-famous Dubai skyscrapers. Living in its apartments is a delight. The minimum cost of an apartment in the Mercury City Tower is 75 million rubles. The average price of a square meter (3.28 square feet) is 800 thousand rubles. And for those looking for a lower price point, some of the properties are also available for rent – in this case you will pay a minimum of 250 thousand rubles per month.

The Imperia Tower is a key cluster of interesting offers. The best options for buying and renting apartments within the MIBC can all be found in this skyscraper. The lowest price of a residential apartment here is 40 million rubles. A square meter (3.28 square feet) in a luxurious apartment in the Imperia Tower currently costs 600 thousand rubles, while the price range of the listings available for rent in this skyscraper is from 350 thousand all the way up to 1 million rubles per month.

This complex, standing on a faceted or “crystal” base, is an architectural engineering project boasting spectacular design. Behind its impressive façades is an abundance of penthouses and apartments having floor areas in the range of 262 sqft (80 m²) to 984 sqft (300 m²). The minimum price of an apartment in the OKO Tower Complex is 40 million rubles (the price of a square meter (3.28 square feet) is 500 thousand rubles). You can rent an apartment here starting from 400 thousand rubles per month.

City of Capitals

The City of Capitals is an exemplary architectural complex. Its sum appearance gives the impression of a huge city. Inside its walls are spacious apartments available for purchase and rent. This complex is considered to be especially prestigious. The prices of apartments here start from 50 million rubles, while the minimum cost of renting is 400 thousand rubles per month.

Please note! The price of real estate available for purchase or rent depends on: the tower, the floor, the total floor area, the furnishings and/or interior design, and other factors.

The key advantages of buying/purchasing real estate in Moscow-City are:

• Favorable location;
• Convenient transportation links;
• Well-developed infrastructure;
• High safety level;
• Efficient architecture;
• Panoramic windows.

Buying real estate in Moscow-City is very much a rational decision, most appealing to those who value the ultimate level of comfort. The residential apartments here boast impressive interior design solutions executed in the contemporary style.

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You Russians have a very Beautiful Rich Culture, I remember a time where the Russian Citizens Broke out in Song Singing the Hymn of Red October and there wasn’t a dry Eye in my House that day. You Spartans Are a Wonderful People to live with.

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The Accidental Tax Cutter in Chief

President biden says he wants to rake in more money from corporations and high earners. but so far, he has cut more taxes than he’s raised..

This transcript was created using speech recognition software. While it has been reviewed by human transcribers, it may contain errors. Please review the episode audio before quoting from this transcript and email [email protected] with any questions.

From “The New York Times,” I’m Michael Barbaro. This is “The Daily.”

[THEME MUSIC]

Today, in his campaign for re-election, President Biden says that raising taxes is at the heart of his agenda. But as it turns out so far, he’s done the opposite as president. My colleague Jim Tankersley explains.

It’s Wednesday, April 3.

Jim, welcome back. We haven’t seen you since the State of the Union. Always a pleasure.

So, so great to be here. And yeah, I finally recovered from staying up all night with you guys.

Yeah, you don’t even know all night. You stopped and we kept going.

That’s true. I did. I got a robust three hours that night. You’re right.

[LAUGHS]:: So Jim, in your capacity as really the chief economic thinker covering this president, you recently came across something very surprising.

Yeah, it started with a pretty basic question for me. I like to do this crazy thing, Michael, where I like to take candidates’ promises and see if they’ve come true.

It’s a little bit wild, but it’s what I do for fun. And in this case, I wanted to look at a very central promise of President Biden’s campaign in 2020, which he has repeated while in office.

I promise you, I guarantee you we can build back, and build back better with an economy that rewards work, not wealth.

The promise was he was going to raise taxes.

But I tell you what I’m going to do, and I make no apologies for it. I’m going to ask the wealthiest Americans and the biggest corporations of the Fortune 500 companies, 91 making a collective billions of dollars, didn’t pay a single solitary penny in federal tax!

Not taxes on the middle class, not taxes on low income workers, but he was going to raise taxes on corporations and the rich.

But I’m going to make sure they pay their fair share!

He was going to make them pay their fair share. And he leaned into it.

Guess what? You’re going to start paying your fair share. I’m going to ask them to finally begin to pay the fair share. It’s not a punishment. Pay your fair share.

He said it over and over.

Fair share? Translation — it’s back to the failed policies of the 1970s.

Republicans loved this. They repeated it too. They told voters that the president was going to raise taxes.

Joe Biden bragging about raising taxes on corporations. That means less money for those very employers to hire people back.

They talked about all the ways in which corporate tax increases could rebound on workers.

Joe Biden will shut down your economy, raise taxes, wants a $4 trillion tax increase. He’s the only politician I’ve ever seen who said, we will raise your taxes. You’re supposed —

It was a very big part of the economic debate for the campaign.

And I wanted to know, is that true? Has that actually played out in the policy agenda the president has had?

So I asked some economists at the Tax Policy Center in Washington to run an analysis and just say, let’s look at all of the ways Biden has changed the tax code in all of those laws he’s signed, and ask, has he raised taxes as president? And it turns out the answer is he has not raised taxes.

On net, he has cut more taxes than he’s raised.

How much more has he cut taxes than raised them?

So by the math that economists use when they look at budgets, the traditional way of scoring tax changes, he has cut taxes by $600 billion on net.

Hmm. A lot of money, a lot of tax cuts.

It’s a lot of tax cuts. The president has been a net tax cutter.

So Jim, why and how did Biden end up cutting taxes, especially if his stated intent was to raise taxes?

Well, there’s two sides of this equation and two complementary explanations for what’s happened here. The first side is the tax increases that Biden ran on, he’s only done a couple of them. He has trillions of dollars of ideas for how to raise taxes on rich people and corporations. The Treasury Department publishes an entire book full of them every year called “The Green Book.”

But in the actual legislation he signed, there’s only been a couple, really. There was a tax on stock buybacks that companies do and then a new minimum tax for certain multinational corporations that have very low tax rates. Those add up to real money, but they are not, in the grand scheme of Biden’s tax increases, a really large amount of the agenda he’s proposed.

So explanation number one, he just hasn’t been that successful in passing tax increases, and there’s a lot of reasons for that. The biggest one is just the simplest one is that he’s just had a really hard time persuading members of Congress, including Democrats, to back some of his favorite tax increases. He wants to raise the corporate income tax rate, which President Trump cut in his 2017 tax bill. Biden wants to raise it to 28 percent from 21 percent. Congress has not had any appetite to go along with that.

He wanted to get rid of what’s called the carried interest loophole, a long-time white whale of Democratic policy making. But he could not get even 50 Democrats to go along with that. Senator Kyrsten Sinema of Arizona was opposed to it, and so it didn’t get included.

And he did some pieces of legislation on a bipartisan basis. And in those cases, Republicans were just not going to pay for anything by raising taxes, and so he had to take those off the table there. So it’s all added up to just not very much activity in Congress to raise taxes on what Biden wants to do.

Got it. So that’s the side of a ledger where Biden simply fails to increase taxes because he can’t get Congress to increase taxes.

Right. But there’s another side, which is also that Biden has signed into law a decent number of tax cuts.

And that starts from the very beginning. Just a couple of months into his presidency, if you’ll recall, we’re still in the depths of the COVID-19 pandemic, the economy is wobbling after it had started to rebound. Biden proposes what is essentially a stimulus bill.

And he includes some tax cuts in there, a tax cut for families, a child tax credit. And it also includes — you remember those direct checks that people got as part of that bill?

Yes, $1,400. I remember them.

Yes, those were technically tax cuts.

So the stimulus bill starts with that. The next year, he passes this bill that is trying to accelerate manufacturing of things like semiconductors in the United States. That’s the CHIPS Act. And that includes some corporate tax cuts for companies that invest in the kind of manufacturing that Biden wants. This is industrial policy via carrots for corporations. And Biden is handing them out as part of this bill.

So tax cuts there. And then finally the Inflation Reduction Act, which includes the largest climate effort in American history is a bunch of corporate tax cuts at its core, tax cuts for manufacturing of solar panels, tax cuts for people to buy electric vehicles, tax cuts for all sorts of things tied to the transition from fossil fuels to lower emission sources of energy. And those tax cuts add up. They add up for corporations. They add up for individuals. And in the end, that full suite of tax cuts that he’s passed across all of this legislation outweighs the modest tax increases that were also included in the Inflation Reduction Act to reduce its cost.

Got it. So a very big reason why Biden ends up cutting taxes, beyond the fact that he’s not able to raise them through Congress, is that that’s what it took, according to those in his administration, to get American industry and American consumers to change their behavior in line with policy goals such as getting more domestic computer chip manufacturing and getting more people to buy electric vehicles they decided the way to do that was to give people tax breaks, which means he cut their taxes.

Right, people and companies. The president certainly has talked throughout the campaign about wanting to give middle class families a break. But he has also, in the process of crafting policy, really come to rely on tax cuts for people and for corporations as a way of achieving these policy goals. And in many cases, again, this is what he had to do to pass these bills through even Democrats in Congress.

Senator Joe Manchin of West Virginia didn’t want to just send money to companies that were making solar panels. He wanted there to be tax incentives for it. And so that is part of the reason why these were created as tax incentives. And so all of this adds up to more of a tax cutting record than you might have imagined when Biden was on the campaign trail.

I’m curious who really ended up benefiting from these tax cuts. You said they went to people and to corporations, but on the whole, did they end up reaching lower income Americans, middle income Americans, or the rich?

Well, we don’t have a full distributional analysis, which is what you’re asking for, of the entirety of Biden’s tax changes. But what we can say this — particularly the ones that were in that early stimulus bill, the recovery plan, those were very much targeted toward lower income and middle income Americans.

There were income limits on who could get things like the Child Tax Credit. Obviously, the direct payments went to people who were middle class or less. So the analysis of that would suggest that these were tax cuts for lower income people, for middle class people. And on the flip side, what I think we are likely to see with the electric vehicle credit through the Inflation Reduction Act is that while there are some income limits on who can qualify for that credit, that the people who end up claiming that credit tend to be the higher earners among the people who qualify.

Right. Who buys a Tesla, after all? Somebody with a fair amount of money.

Right, exactly. And of course, the corporate tax cuts go to companies, flow through to their shareholders. There’s a huge debate in the academic literature among politicians about how much of that benefit actually ends up going to their workers versus stays with shareholders. But we can broadly say that Joe Biden has done a lot for certain corporations who are trying to advance his manufacturing goals in particular to reduce their tax bills. And that is certainly not in line with the rhetoric you hear him talking about most of the time about making corporations pay their fair share. And the White House acknowledges this. I asked them about it. And they basically said, we think there’s a difference between just cutting the corporate tax rate in a way that helps anybody no matter what they’re doing and what we’re trying to do, which is basically reward corporations for accelerating the energy transition.

Understood. But where does this ultimately leave Biden’s campaign promise to make the tax code fairer and to make sure that the well-off in particular and corporations are paying their, what he calls, fair share?

Well, I think by Biden’s own measurements, by his own ambitions, he would have to agree that he is nowhere close to what he believes would be a fair share for corporations. Because Biden is still running on this. As he enters his re-election campaign, as it really heats up, a rematch with Donald Trump, the president is really leaning into this message of we need to do more. We need to raise more taxes on corporate America. It is time for these companies and for high earners to pay their fair share.

Right. I didn’t get it done in the first term. But if you elect me, I’ll get it done in the second.

Give me another shot, and this time, I promise, will be different.

[MUSIC PLAYING]

We’ll be right back.

So Jim, let’s talk about Biden’s tax raising plans for a theoretical second term and why anyone should have any faith that he could get it done, if there’s a second term, given the experience so far of his first term.

Yeah, well, man, there’s a lot of plans to talk about. I don’t think we can get through all of them, but we can certainly hit the highlights here. So we can start with the couple of things that Biden has been able to do to raise taxes on corporations. He wants to take those and then plus them up.

He’s put this new minimum tax on corporations. It’s a 15 percent minimum tax on certain multinationals. He now wants to raise that to 21 percent.

He wants to take that corporate stock buyback tax which is 1 percent right now, and he’d like to quadruple it to 4 percent. And then he goes after some things large and small. He wants to do new taxes that hit the use of corporate and private jets. He wants to do new taxes on companies that pay large amounts of compensation to their executives.

And then we get to some really big taxes on high earning individuals. So the president has said over and over again, he won’t raise taxes on anyone making less than $400,000 a year. But he’s got a bunch of taxes for the people above that. So he wants to raise the top marginal income tax rate. He wants to take it from 37 percent, which is the level set by President Trump’s 2017 tax law, and bring it back to 39.6 percent, which is what it was before. He also wants to impose what he calls a billionaires tax.

OK. It’s a 25 percent tax on the total value of all of the assets of anyone worth more than $100 million.

OK, wait. I have several questions about this.

First being a fact check, if it’s a billionaires tax, it’s interesting that it’s going after people who have just 100 million.

Yeah, I think most billionaires would be offended at the inclusion of 100 millionaires in that. Yes, totally agree. That is factually inaccurate, the name.

Right. But beyond that, this sounds very much like a wealth tax, which we don’t really have in our system.

Yeah, it’s a sort of wealth tax. The Biden people don’t call it a wealth tax, but it is a tax on something other than income that you report every year to the IRS as having been earned. It goes beyond just, oh, I got interest from my stock holdings or I made money from my job. It’s, oh, the value of my art collection increased last year, and now Biden’s going to tax me on that increase, even if I didn’t sell the art.

That’s a real change, and that reflects the president’s view that people with enough money to buy enormous art collections that appreciate enormously in value should be paying more in taxes.

Right. And of course, a tax like this is extremely perhaps maddeningly hard to actually pull off. It’s hard to get someone to describe their art collection’s value so that you can apply a 25 tax to it. So this might end up being more of a political statement than a practical tax.

Yeah, there’s also questions about whether it’s constitutional. So there’s all sorts of drama around this proposal, but it is certainly, if nothing else, a statement of the president’s intent to make people worth a lot of money pay a lot more in taxes.

OK, so that’s a lot of proposed tax increases, almost all of them focused on those who are rich and corporations. Overall, Jim, what stands out to you about this Biden term two tax increase plan?

I think we could very fairly say that it’s the largest tax increasing plan by a sitting president or a presidential nominee for a party in American history.

He wants to get a lot of money from corporations and people who earn or are worth a lot of money.

But the rub, of course, is it’s hard to see the Congressional math that lets Biden accomplish these tax increases, some of which, like you said, he couldn’t get done the first time. Why would we think he would get them done the second time even if he wins this fall?

Yeah, it would be really difficult. Biden would have to win in November. Democrats would have to take the House of Representatives back from Republicans, which is certainly possible. It’s very closely divided right now. And they’d need to hold at least 50 seats in the Senate. And then those 50 Democrats in the Senate would have to be willing to go along with far more in tax increases than Democrats were last time around.

So if there is a second term, it feels like we should assume it will be very difficult perhaps even quite unlikely he’s going to get to push through a lot of these taxes. Which makes me wonder, Jim, why is Biden running on a tax program that he knows has so little chance of becoming reality and when it’s pretty clear that he’s gotten a lot of stuff done without raising taxes? It turns out that’s not been all that essential to getting infrastructure or climate bills done. So why is he making this so central?

Several reasons. One of them is it’s very important to him rhetorically to talk about fiscal responsibility. Big parts of the Biden agenda, the CHIPS bill, the infrastructure bill, some other legislation, were not actually paid for. The spending and tax cuts were not offset by tax increases.

So they’re going to add to the debt.

Right. So they’re going to add to the debt. Same is true of the stimulus bill. But moving forward, the president has said that he’s going to pay for his agenda and he’s actually going to have some extra tax dollars coming in left over to help pay down future budget deficits. And on paper, it’s the way to pay for Biden’s other big, expansive plans that he hasn’t been able to do but wants to — universal child care, federal paid leave, investing in elder care, just a whole bunch of things that he still wants to do more — housing initiatives.

The president needs money to make a case that he’s being fiscally responsible, and this is the money that would do that.

So that’s one reason. Another reason is the calendar. Biden and his team are looking ahead to the end of 2025, and they know that if he wins another term, he will be in office at a rare moment in Washington, when basically tax policy has to be on the Congressional agenda.

Well, Republicans, when they passed their tax cuts in 2017, set a bunch of them to expire at the end of 2025 in order to lower the cost of the bill.

These are the Trump tax cuts.

The Trump tax cuts. And that includes all the tax cuts for individuals. So now that those are coming due, there’s going to be a fight in Washington over whether to extend them or make them permanent or change them in some way or just let them expire, and Democrats know there’s going to be a huge fight that will reach almost certainly the floor of the House and the Senate. And so Biden wants to be ready.

He wants to be ready with a suite of policy proposals that Democrats can basically pull off the shelf and try to use to put Republicans in a box. Basically say, we would like to keep taxes low or cut them further for low income workers, middle class workers. But we want to pay for that by raising taxes on the rich. You Republicans also want to do nice things for low and middle class workers, but you want to cut taxes for corporations and the rich, and we think that’s a political loser for you.

So Biden is ready with what they think will be a political winner for Democrats in this almost certain floor tax fight at the end of 2025.

And that brings us to the last reason why Biden is doing this, and maybe the most important, which is it’s really good politics.

Just explain that. Why is talking about tax increases, net tax increases, such good politics?

If you talk to Democratic pollsters, if you talk to people inside the White House, outside the White House, political strategists anywhere in Biden’s orbit, they all agree that the public loves the idea of forcing rich people and corporations to pay their, quote, “fair share.” It’s just become a winning and central political argument in Democratic campaigns, the idea that corporations avoid taxes, that rich people avoid taxes, and that Joe Biden is trying to position himself as a champion of the idea that they need to pay more. Those corporations and those rich people need to pay more, and he’s going to make it happen.

You’re describing this as something that is kind of a new political reality. Is that right?

Yeah, it’s evolved over the last decade or so I think. For a long time in Washington, the conventional wisdom was just couldn’t talk about tax increases of any kind. They were poison. There was a whole anti-tax movement that did a really good job of messaging that, and Democratic candidates got very scared of talking about raising taxes even on the very, very rich.

That started to turn over time. But it’s really changed. I think we saw in the 2020 election that the Democratic primary had just enormous amounts of taxes on corporations and the rich funding all sorts of policy proposals — Medicare for all and universal child care and trillions and trillions of dollars — and Democratic candidates like Liz Warren and Bernie Sanders competing to see who could tax corporations and the rich the most.

Biden is a product of that primary. He was one of the most moderate people in that group, but his proposals are really outside of the historical norm for Democratic candidates up until then. And that reflects the fact that pollsters have been doing all this research, finding that the American people, including independents and increasingly numbers of Republicans, just don’t think corporations pay their fair share and are open to the idea they should pay more.

This is really interesting, and it makes me think that what you’re really saying is that there might have been a time when a Democratic nominee like Joe Biden might have reveled in his image as an overall tax cutter. But that is not this moment, and that is not this candidate. He wants to be a tax increaser. He thinks that is where the politics are.

I think that’s exactly right when you think about tax increaser as tax increaser on the rich and on corporations. There’s two ways to be a successful populist politician. One of them is to be like Trump and run around saying you’re going to do enormous tax cuts for everybody, which is a Republican version of populism. Trump, my biggest tax cut in history, I’m going to do another huge, enormous tax cut. It’s going to be so big you won’t believe it.

There might have been a time when Democrats tried to follow that playbook. But Biden’s not doing that. He’s leaning into the other side of populism. He’s telling workers, hey, I’m on your side with these big companies. They’re trying to screw you, and I’m not going to stand for it. And so I’m going to raise their taxes. I’m going to make them pay more so that there’s more money for you, whether that’s more tax cuts or more programs or whatever.

And that is the Democratic version of populism right now, and that’s the one that Joe Biden is running on. And that’s why he’s so happy to talk about raising corporate taxes because it’s a way to tell workers, hey, I’m on your side.

Right. Even if that’s not what he’s done or ever may be able to do.

Yeah. Part of the problem with populism is that you make a lot of promises you can’t keep, and this certainly, in his first term, has been an area where the president has talked a much bigger game than he’s been able to execute. The second term might be different, but that doesn’t really matter for the campaign. What matters is the rhetoric.

Well, Jim, thank you very much. We appreciate it.

Thank you. Always a pleasure.

Here’s what else you need to know today. On Tuesday, Israel confirmed that it had carried out the airstrike that killed seven aid workers delivering food to civilians in Gaza. The attack, which occurred on Monday, struck a convoy run by the World Central Kitchen, a nonprofit group. At the time of the attack, the aid workers were traveling in clearly marked cars that designated them as non-combatants.

Israel’s Prime Minister Benjamin Netanyahu described the attack as unintentional and said that his government deeply regretted the deaths. In its own statement, World Central Kitchen called the strike unforgivable and said that as a result, it would suspend its aid work in Gaza, where millions of people are in dire need of both food and medicine.

Today’s episode was produced by Stella Tan and Mary Wilson with help from Michael Simon Johnson. It was edited by Lisa Chow, contains original music by Dan Powell and Marion Lozano, and was engineered by Chris Wood. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for “The Daily.” I’m Michael Barbaro. See you tomorrow.

• April 4, 2024   •   32:37 Israel’s Deadly Airstrike on the World Central Kitchen
• April 3, 2024   •   27:42 The Accidental Tax Cutter in Chief
• April 2, 2024   •   29:32 Kids Are Missing School at an Alarming Rate
• April 1, 2024   •   36:14 Ronna McDaniel, TV News and the Trump Problem
• March 29, 2024   •   48:42 Hamas Took Her, and Still Has Her Husband
• March 28, 2024   •   33:40 The Newest Tech Start-Up Billionaire? Donald Trump.
• March 27, 2024   •   28:06 Democrats’ Plan to Save the Republican House Speaker
• March 26, 2024   •   29:13 The United States vs. the iPhone
• March 25, 2024   •   25:59 A Terrorist Attack in Russia
• March 24, 2024   •   21:39 The Sunday Read: ‘My Goldendoodle Spent a Week at Some Luxury Dog ‘Hotels.’ I Tagged Along.’
• March 22, 2024   •   35:30 Chuck Schumer on His Campaign to Oust Israel’s Leader
• March 21, 2024   •   27:18 The Caitlin Clark Phenomenon

Hosted by Michael Barbaro

Featuring Jim Tankersley

Produced by Stella Tan and Mary Wilson

With Michael Simon Johnson

Edited by Lisa Chow

Original music by Dan Powell and Marion Lozano

Engineered by Chris Wood

Listen and follow The Daily Apple Podcasts | Spotify | Amazon Music

In his campaign for re-election, President Biden has said that raising taxes on the wealthy and on big corporations is at the heart of his agenda. But under his watch, overall net taxes have decreased.

Jim Tankersley, who covers economic policy for The Times, explains.

On today’s episode

Jim Tankersley , who covers economic policy at the White House for The New York Times.

Background reading

An analysis prepared for The New York Times estimates that the tax changes President Biden has ushered into law will amount to a net cut of about $600 billion over four years.

“Does anybody here think the tax code’s fair?” For Mr. Biden, tax policy has been at the center of his efforts to make the economy more equitable.

There are a lot of ways to listen to The Daily. Here’s how.

We aim to make transcripts available the next workday after an episode’s publication. You can find them at the top of the page.

The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

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Jim Tankersley writes about economic policy at the White House and how it affects the country and the world. He has covered the topic for more than a dozen years in Washington, with a focus on the middle class. More about Jim Tankersley

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