Question

InREACH Solutions is planning forisome significant growth to their business and the financial team at the company has determined that they need to secure some bank financing to fund ongoing operations. man deep is a high level manager and has been tasked with preparing a business plan to present to the bank, in order to persuade it to extend credit to InREACH Solutions. Which of the following would not belong in an effective business plan aimed at securing bank financing?

a. The reasons for borrowing
b. How the business intends to use the money
c. The banking history of the business's key employees
d. A description of the sources and types of collateral available

Answer 1

When preparing a business plan for bank financing, a manager should include reasons for borrowing, intended use of funds, and collateral details. The banking history of the business's key employees is typically not included, as the focus is on the business's credit and financial status.

Step-by-step explanation:

In preparing a business plan to secure bank financing for InREACH Solutions, a high-level manager like Imandeep would need to include a variety of details that make a strong case for the loan. Among essential elements are:

• The reasons for borrowing.
• How the business intends to use the money.
• A description of the sources and types of collateral available.

However,

the banking history of the business's key employees

would not typically belong in such a business plan, as the emphasis should be on the business's credit history and financial strength, not individual employees' banking history unless they are co-signing the loan or have a significant stake in the company.