Quick answer: An Australian lender funds one thing — repayment capacity. Your business plan has to prove it: a specific funding request (amount, term, use of funds), realistic three-way financials (P&L, cash flow, balance sheet) over 3–5 years, and a serviceability story a credit assessor can check in minutes. Below is exactly what to include, in the order lenders read it.
When your bank or broker asks for a business plan, they aren't grading the writing. They're answering one question: can this business repay the loan, on time, even if conditions get tougher than forecast? Write to that question and your odds — and your terms — improve. Write around it and you burn applications. This is the same standard we build to when we structure a deal for finance at Black Mountain Financial.
What Australian lenders actually look for — the 5 C's
Credit teams assess the five C's of credit. A plan that answers each, in plain terms, is a plan that gets read to the end.
| C | What it means | Where it lives in your plan |
|---|---|---|
| Character | Track record, experience, conduct | Management & ownership section |
| Capacity | Can the cash flow cover the repayments? (the heart of it) | Forecast cash flow vs loan repayments |
| Capital | Your own contribution / equity in the deal | Funding request |
| Collateral | Security on offer (property, equipment, GSA) | Funding request |
| Conditions | Market, industry and economic context | Industry & market analysis |
The structure that gets approved
A fundable plan isn't a description of your business — it's an argument for repayment, in the order a credit assessor reads. These are the ten sections a lender-ready plan covers. Most weak plans collapse industry, customer and competition into one thin "market" section and skip use-of-funds and milestones — that's the gap that gets them knocked back.
- Executive summary (write it last). One page: a business overview, success factors (the 3–5 reasons this works), and financial highlights (amount requested, term, use of funds, and a topline 3–5 year revenue / EBITDA / net profit snapshot).
- Company overview. Who you are and your history, legal structure, ABN and registrations, products and services with pricing and margins, and your premises or site.
- Industry analysis. Market size, statistics and trends — with credible Australian sources (business.gov.au, the ABS, IBISWorld, industry bodies), attributed, not asserted.
- Customer analysis. Your target segments, backed with demand evidence — local demographics, catchment, volumes — for your location.
- Competitive analysis. Direct and indirect competitors, honestly assessed, and a clear competitive advantage that holds.
- Marketing plan. Brand and positioning, promotions strategy (channels, launch, referrals), and pricing strategy and how it protects margin.
- Operations plan. Functional roles and a dated milestones table (lease, fit-out, hire, launch, break-even) — a credible path, on a timeline.
- Management team. The experience that proves you can execute and repay (your Character evidence), plus a hiring plan.
- Financial plan. Revenue and cost drivers, capital requirements and use of funds (amount line by line, your contribution, the security), key assumptions, the three-way model (P&L 3–5 yrs, monthly cash flow for year one, balance sheet, break-even and ratios), and a serviceability view with a downside scenario.
- Appendix. Full 3–5 year financial statements, owner CVs, equipment quotes, contracts or letters of intent, the lease, and BAS/tax where relevant.
The mistakes that get applications knocked back
- Unrealistic forecasts with no assumptions — the single biggest credibility killer.
- No clear use of funds or repayment story.
- A generic, AI-template feel with no real market data.
- Cash flow that doesn't actually cover the repayments — or that ignores GST timing.
- US/SBA boilerplate dropped into an Australian application — "SBA loan" and US dollar figures are an instant tell.
A free outline you can copy
1. Executive summary — business overview, success factors, financial highlights (written last)
2. Company overview — who, history, structure/ABN, products & pricing, premises
3. Industry analysis — market size, stats & trends (AU sources, attributed)
4. Customer analysis — target segments + demand evidence
5. Competitive analysis — direct/indirect competitors + competitive advantage
6. Marketing plan — brand/positioning, promotions, pricing
7. Operations plan — functional roles + dated milestones
8. Management team — members (Character) + hiring plan
9. Financial plan — revenue/cost drivers, capital & use of funds, assumptions, 3-way model, serviceability + downside
10. Appendix — full 3–5 yr statements, CVs, quotes, contracts, lease
Business plan & business loan FAQ
Do I need a business plan for a bank loan?
For most business and commercial loans in Australia, yes. Lenders use it to assess repayment capacity and risk, and brokers usually require one to take your deal to market.
Can a business plan get you a loan?
A plan doesn't guarantee approval — no document does. But a credible, lender-aligned plan with a strong serviceability story materially improves both your odds and your terms.
How long should a business plan be?
Long enough to answer the five C's — typically 15–30 pages plus the financial appendix. Clarity beats length; a credit assessor is reading for the answer, not the word count.
How much does it cost to have a business plan written in Australia?
In Australia, professional business plans typically run A$1,500–$5,000+ depending on complexity and the depth of financial modelling required. A lender-grade plan with full three-way financials sits at the higher end, because the financials are the part lenders scrutinise most.
What financials do lenders want to see?
Three-way financials — profit & loss, cash flow and balance sheet — over 3–5 years, with break-even, key ratios and stated assumptions, plus a serviceability view showing the forecast covers repayments.
General information only — not credit assistance, credit advice or a finance offer. Lending criteria, terms and eligibility apply. Black Mountain Financial · Australian Credit Licence 570391.