Business Plan Needed for $4,000 Line of Credit?

[NamesCody]

Is a business plan needed for a $4,000 line of credit or will documents stating roughly my percentage per item sold and what I will use the $4k for (first month's payroll, REFUNDABLE security deposits) suffice?

[jkirkland]

A formal business plan is not always needed for a startup business; however, it is usually needed to obtain any type of outside lending. Having said that, business plans can range in size from a couple of pages with just the basics to a couple of hundred pages of detailed analysis depending on the type and size of venture. It depends a lot though on your personal financial situation and whether or not you have a good ongoing relationship with the institution that you are attempting to borrow from. Also, it is good to keep in mind that lenders are PEOPLE who may have thier own perspective on how well developed of a plan you should have when walking into thier office. The fact is that expecially in today's economic downfall, it is best to have a well thought out and complete business plan when seeking outside lending.

[questeds]

For that amount of money, have you thought about just getting a c/card - it will provide more flexibility in the long run?

My personal opinion is that you should have a business plan, even if it is on the back of a fuel reciept. You need to have in writing what your goals from the business are and how you believe you can achieve them. You can then refer back to this, and adjust if neccessary, but it always gives you an anchor point