posted on July 5, 2023
Not always needed; however, it is best practice to have a business plan. Suppose the use of capital is either unique, unproven, or risky (in the lender's eyes). In that case, a well-articulated business plan helps you convey the message that you understand the risk and have mitigants in place. In other words, you demonstrate your confidence in making profits to repay a loan or provide returns to equity investors.