Free Auto Loan Company Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $10,000,000 for the development of a
automotive loan lender while showcasing the expected financials and operations
over the next three years. Auto Loan Company, Inc. (“the Company”) is a
New York based
corporation that will provide term loans for vehicle purchases to customers in
its targeted market based on their credit score and income. The Company was
founded in John Doe.
1.1 Products and Services
The Company will provide term loans to people that are living within the Company’s target
market, and which it is authorized to do business based on the income and credit
score of customers in regards to their vehicle purchases. Through the Company’s
lending infrastructure, Auto Loan Company, Inc. will provide:
Management and serving of loan portfolios
Alternative methods of financing automobiles
Fast and flexible lending decisions for borrowers
Management has developed extensive procedures that will allow the Company to provide
loans to these people while maintaining strict credit protocols that will insure
that the business keeps its bad debt expenses to an absolute minimum.
The third section of the business plan will further describe the services offered by the
Auto Loan Company.
1.2 The Financing
Mr. Doe is seeking to raise $10 million from an investor in order to launch the
operations of the business. The terms of this investment are to be discussed
during negotiations. The financing will be used for the following:
Development of the Company’s retail Auto Loan location.
Financing for the first six months of operation.
Capital to finance the Company’s vehicle loans.
1.3 Mission Statement
Auto Loan Company’s mission is to become the recognized leader in its targeted market for
providing automotive loans and lending services based on the customer’s income
and credit quality.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the
auto loan industry. Through his expertise, he will be able to bring
the operations of the business to profitability within its first year of
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the
expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first
three years of operation. Mr. Doe intends to implement marketing campaigns that
will effectively target middle income individuals.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Auto Loan Company, Inc.
The Company is registered as a corporation in the State of
2.2 Required Funds
At this time, Auto Loan Company, Inc. requires $10
million of investment funds. Below is a breakdown of how these
funds will be used:
2.3 Investor Equity
This will be discussed during
2.4 Management Equity
This will be discussed during
2.5 Exit Strategy
If the business is very
successful, Mr. Doe may seek to sell the business to a third party for a
significant earnings multiple. Most likely, the Company will hire a qualified
business broker to sell the business on behalf of the Auto Loan Company. Based
on historical numbers, the business could fetch a sales premium of up to 5 to 7
3.0 Products and Services
As stated in the executive
summary, the business intends to provide loans to people that are seeking to
purchase, lease, and finance the acquisition of new and used vehicles. At the
onset of operations, the business will have close to $8.5 million of funds that
will be used directly for this purpose. In the future, the business may seek to
securitize these loans so that the business can continually finance new
purchases of vehicles for its customer base.
Management has developed the
following requirements for a loan from Auto Loan Company, Inc.:
Deposit via an active bank accounting
- A job that
they have held for at least three months
- Income of at
least $2,000 per month
The Company will require the
following documentation for a loan:
- Voided Check
- Recent Bank
- Pay Stub
- State Issued
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the auto loan industry, the customer
profile, and the competition that the business will face as it progresses
through its business operations.
Currently, the economic market condition in the United States is moderate. Unemployment
rates have declined while asset prices have risen substantially. However,
automotive loans are in demand in all economic climates.
4.2 Industry Analysis
In the United States
there are over 60,000 businesses that operate as non-depository credit
institutions. Among these businesses, an aggregates receipt over each of the
last five years has been in excess of $229 billion dollars of interest revenue.
These businesses employ over 500,000 people and provide gross annual payrolls in
excess of $22 billion dollars. Approximately 5,000 of these businesses operate
within a similar capacity as that of the Company.
The industry has recently undergone a revolution with the advent of the Internet. With instant access
to customer verification, people can seamlessly borrow capital from banks that
conduct business on the Internet. This aspect of the industry is expected to
grow at a rate of 10% per year for the next five years. The Company intends to
capitalize on this trend.
4.3 Customer Profile
The Company will cater to a
large audience of middle income people that are in need of vehicle purchases.
The primary demographics of the people that the Company is targeting include but
are not limited to:
- Earns more than $30,000 per
- Has a bank account
- Is employed at the same
business for the last six months (for loans).
Auto Loan Company, Inc. is
quickly developing its credit manual to develop guidelines regarding its loan
business. The business has already employed several techniques to ensure that
credit default is kept to an absolute minimum as it relates to auto loans that
are granted. In regards to the Company’s lending services, the business will
require authorization to debit the customer’s account on the day that the loan
becomes due on a monthly basis or other basis which has been established with
the customer prior to them engaging the business for an automotive loan.
4.4 Competitive Analysis
This is one of the sections of
the business plan that you must write completely on your own. The key to writing
a strong competitive analysis is that you do your research on the local
competition. Find out who your competitors are by searching online directories
and searching in your local Yellow Pages. If there are a number of competitors
in the same industry (meaning that it is not feasible to describe each one) then
showcase the number of businesses that compete with you, and why your business
will provide customers with service/products that are of better quality or less
expensive than your competition.
5.0 Marketing Plan
Auto Loan Company, Inc.
intends to maintain an extensive marketing campaign that will ensure maximum
visibility for the business in its targeted market. Below is an overview of the
marketing strategies and objectives of the Company.
5.1 Marketing Objectives
Develop an online presence by developing a website and placing the Company’s
name and contact information with online directories.
Implement a local campaign with the Company’s targeted market via the use of
flyers, local newspaper advertisements, and word of mouth advertising.
Establish relationships with car dealers locations that do not offer auto loan
services within the targeted market.
5.2 Marketing Strategies
Mr. Doe intends on using a
number of marketing strategies that will allow the Auto Loan Company to easily
target men and women within the target market. These strategies include
traditional print advertisements and ads placed on search engines on the
Internet. Below is a description of how the business intends to market its
services to the general public.
The Auto Loan Company will also
use an internet based strategy. This is very important as many people seeking
local services, such as auto loan lenders, now the Internet to conduct their
preliminary searches. Mr. Doe will register the Auto Loan Company with online
portals so that potential customers can easily reach the business. The Company
will also develop its own online website, which may include functionality for
allowing customers to directly acquire loans over the internet.
The Company will maintain a
sizable amount of print and traditional advertising methods within local markets
to promote the automotive loans that the Company is offering.
The business will also maintain
close connections with traditional lending institutions that will refer their
customers to the Auto Loan Company for loans that do not meet their criteria as
it pertains to acquiring vehicle based terms loans. By developing these
relationships with traditional loan sources, the Auto Loan Company will be able
to generate a substantial amount of additional income through referral leads
among small banks and nationally recognized banks that operate within the
Company’s target market. Mr. Doe will aggressively pursue these relationships
from the onset of business operations.
In this section, describe the pricing of your services and products. You should provide as much
information as possible about your pricing as possible in this section. However,
if you have hundreds of items, condense your product list categorically. This
section of the business plan should not span more than 1 page.more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its
proforma financial statements on the following:
Auto Loan Company, Inc. will
have an annual revenue growth rate of 13% per year.
The Founder will acquire
$10,000,000 of capital to develop the business.
7.2 Sensitivity Analysis
The businesses’ revenues are
not sensitive to the overall change in the general economic market. The demand
for new vehicles that are financed may wane during times of economic recession.
However, the high margins generated by the business will ensure that the Auto
Loan Company is able to remain profitable and cash flow positive at all times.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis