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Assessment of Loanable Business Plan and its Correlation with Bank Loan Provision
American Journal of Economics and Business Management,
Vol. 6 No. 8 (2023): American Journal of Economics and Business Management
Abstract
Loanable business plans are an equilibrium between how rooted a business will be and how successful it will be in the future. The effect of not having a loanable business plan on business is corrosive and can be seen as one of the major reasons most businesses fall through within the first five years of their creation. The study assessed the loanable business plan and its correlation with bank loan provision. The study revealed that a well-structured business plan serves as a roadmap for the company's growth and provides assurance to lenders that their investment will be wisely used and repaid. It encompasses various elements, including market analysis, financial projections, and risk assessment. In conclusion, the assessment of a loanable business plan is a comprehensive process that involves evaluating various aspects of a business's operations and strategy. It is a critical determinant of a bank's decision to provide a loan, as it demonstrates the borrower's ability to plan, manage risks, and generate returns. One of the recommendations made in the study was that entrepreneurs should clearly identify potential risks their business may face and outline strategies to mitigate them for this shows lenders that they have considered various challenges and have a plan to address them.
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- Basic-concept.com (2023). Basic Concept of Business Plan Available at: https://www.basic-concept.com/c/basic-concept-of-business-plan
- CFI Education Inc. (2023). Loan Available at: https://corporatefinanceinstitute.com /resources/commercial-lending/loan/
- Corporate Finance Institute Com (2023) Types of Loans Available at: https://corporatefinanceinstitute.com/resources/commercial-lending/loan/
- Economicshelp.org (2023). Bank Loan Retrieve From: https://www.economicshelp. org/blog/glossary/bank-loans/
- Entrepreneur Media, LLC (2023). Business Plan Available at: https://www.entrepreneur.com /encyclopedia/business-plan
- Gigli, M. (2021). What is Bank Loan Available at: https://study.com/academy/lesson/what-is-a-bank-loan-lesson-quiz.html
- Hayes, A. (2023). Business Plan: What It Is, What's Included, and How To Write One Available at: iness%20Plan%3F,%2C%20financial%2C%20and%20operational%20standpoints
- Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2017). Entrepreneurship Available at: McGraw-Hill Education.
- HubSpot, Inc. (2023). What is a Business Plan? Definition, Tips, and Templates Available at: https://blog.hubspot.com/marketing/what-is-business-plan
- Mishkin, F. S., & Eakins, S. G. (2015) Financial Markets and Institutions (8th ed.) Available at: Pearson.
- Philps, R. & Campbell, C. (2023). Advantages and Disadvantages of Bank Loans for Small Businesses Available at: https://www.nerdwallet.com/uk/business-loans/pro-and-cons-of-bank-loans-for-small-businesses/
- Pinson, L. (2018). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company's Future. Student seminar. University of Lagos.
- Saunders, A., & Cornett, M. M. (2016) Financial Institutions Management: A Risk Management Approach (9th ed.) Retrieve From: McGraw-Hill Education.
- Spinelli, S., & Adams, R. J. (2012). New venture creation: Entrepreneurship for the 21st century. Retrieve From: McGraw-Hill Education.
- Tsang, B. (2023). How Bank Loans Work: Advantages, Disadvantages and Things You Need To Know. Available at: https://choco-up.com/blog/bank-loans
References
Basic-concept.com (2023). Basic Concept of Business Plan Available at: https://www.basic-concept.com/c/basic-concept-of-business-plan
CFI Education Inc. (2023). Loan Available at: https://corporatefinanceinstitute.com /resources/commercial-lending/loan/
Corporate Finance Institute Com (2023) Types of Loans Available at: https://corporatefinanceinstitute.com/resources/commercial-lending/loan/
Economicshelp.org (2023). Bank Loan Retrieve From: https://www.economicshelp. org/blog/glossary/bank-loans/
Entrepreneur Media, LLC (2023). Business Plan Available at: https://www.entrepreneur.com /encyclopedia/business-plan
Gigli, M. (2021). What is Bank Loan Available at: https://study.com/academy/lesson/what-is-a-bank-loan-lesson-quiz.html
Hayes, A. (2023). Business Plan: What It Is, What's Included, and How To Write One Available at: iness%20Plan%3F,%2C%20financial%2C%20and%20operational%20standpoints
Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2017). Entrepreneurship Available at: McGraw-Hill Education.
HubSpot, Inc. (2023). What is a Business Plan? Definition, Tips, and Templates Available at: https://blog.hubspot.com/marketing/what-is-business-plan
Mishkin, F. S., & Eakins, S. G. (2015) Financial Markets and Institutions (8th ed.) Available at: Pearson.
Philps, R. & Campbell, C. (2023). Advantages and Disadvantages of Bank Loans for Small Businesses Available at: https://www.nerdwallet.com/uk/business-loans/pro-and-cons-of-bank-loans-for-small-businesses/
Pinson, L. (2018). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company's Future. Student seminar. University of Lagos.
Saunders, A., & Cornett, M. M. (2016) Financial Institutions Management: A Risk Management Approach (9th ed.) Retrieve From: McGraw-Hill Education.
Spinelli, S., & Adams, R. J. (2012). New venture creation: Entrepreneurship for the 21st century. Retrieve From: McGraw-Hill Education.
Tsang, B. (2023). How Bank Loans Work: Advantages, Disadvantages and Things You Need To Know. Available at: https://choco-up.com/blog/bank-loans