Assessment of Loanable Business Plan and its Correlation with Bank Loan Provision

Authors

  • Sakiru Abiola Lawal Department of Banking and Finance, Lagos State Polytechnic
  • Undie Stephen Bepeh Department of Vocational Education, University of Calabar

Keywords:

Business Plan, Bank Loan Provision

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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Published

2023-08-31

How to Cite

Sakiru Abiola Lawal, & Undie Stephen Bepeh. (2023). Assessment of Loanable Business Plan and its Correlation with Bank Loan Provision. American Journal of Economics and Business Management, 6(8), 174–185. Retrieved from https://globalresearchnetwork.us/index.php/ajebm/article/view/2406