A written business plan can feel like a huge hurdle between you and funding. The good news: for most of the funding small businesses actually use, you do not need one at all.
It depends on who you borrow from
Whether a business plan is required comes down to the type of lender, not some universal rule. Banks and the SBA are document-heavy and often want to see a plan. Online lenders and revenue-based funders care far more about your recent deposits than a slide deck.
The Broker Shop is a broker, not a lender — we send one application to 50+ competing lenders, so you can see which products want a plan and which do not before you spend a weekend writing one.
When a business plan is genuinely required
Two situations call for a real plan. The first is an SBA loan: lenders underwriting a 7(a) or 504 loan want projections, a market analysis, and a use-of-funds breakdown. The second is a traditional bank term loan, especially for a newer business or a large request, where the banker has to justify the file to a credit committee.
In both cases the plan does real work: it shows how you will repay. If you are pursuing either path, a tight 8 to 12 page plan with realistic financials is worth the effort.
When you can skip it entirely
Most fast funding products do not ask for a plan. Merchant cash advances, revenue-based financing, short-term working capital, and many online lines of credit underwrite primarily on your business bank statements — typically the last three to six months. If the deposits are healthy and consistent, the numbers speak for themselves.
That is why an owner with strong sales but no formal plan can often get funded in days, while the same owner might wait weeks for a bank that wants a plan first.
What lenders look at instead
When there is no plan, underwriters lean on a short list: average monthly revenue, time in business, daily ending balances and overdrafts, existing debt or other advances, and your personal credit profile. Strong, steady deposits with few negative days do more for your file than any narrative.
Checking your options won't affect your credit score, so it is worth seeing what you qualify for before deciding whether a plan is even necessary.
See what you qualify for
One 2-minute application reaches 50+ competing lenders. It's free, and checking your options won't affect your credit score.
See What I Qualify For →The bottom line: You only need a formal business plan for bank and SBA loans — most fast funding underwrites on your bank statements, so check your options first and write a plan only if a lender actually requires one.