Who this is for
Owners applying for a commercial loan, a line of credit, equipment financing or a government-backed small business loan. Also anyone buying a business, opening a second location or a franchise.
The seven parts
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The business in one page. What it does, where, since when, and the legal form: sole proprietorship or corporation. Licences and registrations.
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The owner. Experience that relates to the business. Lenders lend to people as much as to plans.
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Customers and competition. Who buys, why they buy from you, and who else they could buy from. Specific and local beats grand and vague.
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The ask. The amount, the type of financing, the term, and what security is offered. One clear number.
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Use of funds. A table showing where every dollar goes: equipment, leasehold improvements, inventory, working capital. Quotes from suppliers where you have them.
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The numbers. Historical figures from filed returns and bank statements. Projections for the loan period, with the assumptions written out. A cash flow forecast when the lender asks for one.
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Repayment. The monthly payment, where it comes from in the cash flow, and what happens in a slow month. Lenders want to see that you have thought about the downside.
One thing many people do not realize
Lenders check the plan’s figures against documents they already have: your last tax return, your bank statements, your existing loan balances. A plan whose numbers do not match those documents is set aside no matter how good the writing is. Start from the real figures and build the plan on them, not the other way round.
What to prepare
- Last two or three years of tax returns and financial statements, if any
- Twelve months of business bank statements
- Existing loan and lease statements
- Quotes or estimates for what the money will buy
- A one-page description of the business in your own words
- The lender’s application form or list of requirements, if you have it
When professional help may make sense
If the lender has asked for projections, or if the business has no filed history yet, the figures need to be built carefully and explained. A plan that overstates will be found out at the bank; a plan that understates will be declined.
How Rex Tax may be able to help
We prepare business plans and the supporting figures for financing applications, from your real records. We are not a lender or a broker, and we do not prepare audited or reviewed financial statements. A good plan improves the application; approval is the lender’s decision.
Official sources
- BDC (Crown corporation): articles and tools for business owners
- Government of Canada: Canada Small Business Financing Program
This guide is general information, not advice about your situation. It reflects the rules for the 2026 tax year. It has not yet been reviewed by a practitioner. The information was checked against the official sources listed above on the date shown. Rules change. Check the official sources above or ask us. How we prepare these guides.