How to Write a Business Plan for a Canadian Bank Loan: A Step-by-Step Guide
Securing funding from a Canadian bank can be a turning point for your business, but only if you present a clear, compelling business plan. Whether you're applying to RBC, BMO, TD, or a development-focused lender like BDC or Futurpreneur, your business plan needs to reflect not just your ambition, but your bankability.
At Mikel Consulting, we’ve helped over 4,000 businesses across Canada develop investor-ready and loan-ready plans that get results. In this article, we’ll walk you through the structure and strategy of a loan-winning business plan, tailored specifically for Canadian lenders.
Need a bank loan business plan? View our samples here or get a custom quote.
Understand What Canadian Lenders Look For
Canadian banks are conservative lenders. They’re not just investing in your idea, they're assessing the risk of lending to you. Your plan needs to show that you're:
Well-prepared and understand your market
Financially realistic, with detailed projections
Loan-worthy, meaning you can repay the debt on time
Different lenders may have slightly different expectations. For example:
BDC focuses on growth-oriented businesses and often requires expansion plans and innovation.
Futurpreneur targets young entrepreneurs under 40, and prioritizes mentorship alongside funding.
CSBFP is a federal-backed program that reduces lender risk, but still requires a complete business plan and borrower contribution.
A one-size-fits-all plan won’t cut it. That’s why we build customized plans for each lender.
Start with a Clear Executive Summary
This is your elevator pitch on paper. In 1–2 pages, summarize:
Who you are
What your business does
How much funding you’re seeking
What the funds will be used for
How the loan will be repaid
If this section doesn’t grab attention, lenders may never read the rest. It should mirror the tone of your loan request - professional, confident, and fact-based.
Tip: If you're applying to multiple lenders, tailor this summary to match each lender’s priorities. See how we customize loan plans here.
Company Overview: Show the Foundation is Solid
Banks want to see stability and structure. Include:
Your legal structure (sole prop, corp, etc.)
Ownership breakdown
Founding date and location
Key management team and their qualifications
Milestones already achieved
If you're applying to a values-driven lender like Vancity, highlight how your company aligns with local impact or sustainability values.
Market Research & Industry Fit
Your business doesn’t exist in a vacuum. Lenders want to know:
Is there demand for your product/service?
How big is the market?
Who are your competitors?
What makes your approach different?
Use credible sources like Statistics Canada, IBISWorld, or local market reports.
Example: A past client applying for CSBFP funding used regional growth data from StatCan to support expansion into a rural BC market - helping secure their $75K loan.
Products or Services & Revenue Strategy
Explain what you sell, how it works, and how you make money.
Break down your pricing strategy
Explain any recurring revenue models (subscriptions, service contracts)
Discuss seasonal patterns if relevant
Show any early sales, contracts, or pipeline
At Mikel Consulting, we emphasize clarity here. A great business plan doesn’t just describe the product - it sells the revenue model to the lender.
Marketing & Sales Plan
Here’s where you explain how you’ll reach your customers:
Digital marketing (social, Google Ads, etc.)
Local promotions or partnerships
Sales strategy (in-house, agents, referrals)
Don’t just say “we will advertise” - get specific. Include timelines and marketing budget tied to the loan amount.
Financial Plan: The Core of Loan Decision-Making
Lenders care most about this section. Include:
5-year financial projections: income statement, cash flow, balance sheet
Break-even analysis
Loan amortization schedule
Key ratios: debt service coverage ratio, gross margin, net margin
Need help getting this right? Our financial modeling services are designed to meet lender expectations across Canada. We ensure your forecasts align with bank loan underwriting standards.
Loan Request & Use of Funds
Be direct and specific. This section should cover:
Total loan amount requested
Amount of owner equity contributed (if applicable)
Breakdown of how funds will be used:
Equipment
Inventory
Working capital
Marketing
Leasehold improvements
Note: For programs like CSBFP, eligible expenses must match federal guidelines. We help ensure your breakdown is fully compliant.
Final Tips to Improve Your Approval Odds
Avoid fluff. Be clear and specific.
Customize your plan for each lender and program.
Include contingency plans to show foresight.
Keep formatting clean and professional—this isn’t a pitch deck.
Need Help? Mikel Consulting Builds Plans That Get Funded.
If you’re unsure where to start—or just want a professional to handle it—Mikel Consulting is here to help. We’ve helped secure over $1.6 billion in funding for clients across Canada through tailored, lender-ready business plans.
Writing a business plan for a Canadian bank loan is more than a formality - it’s your first impression. Make it count.
