PROFITTHEORY

Business plan and loan story

How your business plan and loan story are built into the package

A lender reads a business plan to answer one question: how will this loan be repaid? We build the plan and story as part of your loan package, focused on cash flow, management and risk. We do not sell business plans separately.

Profit Theory, LLC is not a lender. Lenders and the SBA make all decisions; approval, rates and savings are never guaranteed. Educational only.

Not legal or tax advice. Talk with your attorney and tax advisor before you sign. As of November 2, 2026.

Key takeaways

The projection logic

Projected revenue = units or clients × price × months

Projected cash flow = revenue − operating costs − owner pay − taxes

Cushion = projected cash flow − annual debt service

Worked example (illustrative numbers)

A plan for a $350,000 equipment and build-out loan for a second clinic location (illustrative):

  • Story: existing clinic at capacity with a 6-week waitlist; second site serves overflow.
  • Assumption: 60% of first location's volume by month 12, ramping evenly.
  • Year-one projected cash flow $118,000; annual debt service $52,000.
  • Cushion ≈ $66,000; DSCR ≈ 2.3×.
  • Risk named: slower ramp. Mitigation: existing clinic cash flow covers payments alone.

Illustrative only. Real terms depend on the lender, the SBA and your file.

What goes in a lending plan

Keep it tight and evidence-based.

  • Executive summary and loan request
  • Company and ownership
  • Market and customers, with sources
  • Operations and management experience
  • Financial projections and assumptions
  • Risks and mitigation

Official sources (checked November 2, 2026)

  • SBA lenders may require a business plan for startups and changes of ownership; confirm with your lender.

Rates, caps and fees change. Check the official source before you rely on any figure: SBA: 7(a) loans (sba.gov).

Common questions

Do you sell business plans?

No. The plan and loan story are built only as part of a loan package.

Does every loan need a business plan?

Not always. Established businesses with steady cash flow may need only a short summary; startups and acquisitions usually need a fuller plan.

How long should a lending plan be?

Long enough to explain repayment and risk clearly. Many are 10–20 pages plus financials.

Can I write it myself?

Yes. Many owners draft it; a review helps make sure numbers tie to the rest of the package.

Want a second set of eyes on your deal?

A financing specialist can review your numbers, structure and documents and help prepare a lender-ready package.

Request a package review

Estimates only. Results vary. No guarantee of approval, rates or savings.

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