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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Nov. 30

Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2020

Business Startup Guides
Checkout our new sister site!

Free Commercial Bank 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.

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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
  • Loan Amortization and ROI Tools
  • 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 commercial bank while showcasing the expected financials and operations over the next three years. Commercial Bank, Inc. (“the Company”) is a New York based corporation that will provide traditional commercial banking services for its investors in its targeted market. The Company was founded by John Doe.

1.1 Products and Services

As stated above, the Company will act in a traditional banking capacity by offering loans, checking accounts, savings accounts, and other financial products normally associated with banks. At this time, Mr. Doe is securing the capital that is required in order to receive a banking license from the US Federal Reserve. The Founder is also undergoing the process of acquiring the needed licensure to operate this business. The third section of the business plan will further describe the underwriting services and investment management services offered by the Commercial Bank.

1.2 The Financing

At this time, the Company is seeking to raise $10,000,000 for the development of the Commercial Bank’s operations. Mr. Doe is seeking to sell an 80% ownership interest in the business in exchange for this capital. 85% of the invested capital will be used for direct investments into the firm’s investments. Briefly, the capital will be used as follows: • Financing for lending activities. • Development of the Company’s initial branch. • General working capital.

1.3 Mission Statement

Management’s mission is to provide the greater New York metropolitan area with an extensive line of banking and financial services that are affordable and convenient.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the commercial banking industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

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 Company plans on positioning itself toward becoming a leading financial services provider among middle income people. As time continues, Commercial Bank, Inc. intends to not only expand its geographic reach by establishing relationships and offices in other major metropolitan areas but also by acquiring banks.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Commercial Bank, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Commercial Bank requires $10,000,000 of equity funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

At this time, Mr. Doe is seeking to sell an 80% interest in the Commercial Bank in exchange for the capital sought in this business plan. Please reference the Company’s private placement memorandum regarding more information regarding the Company’s fee and ownership structure.

2.4 Management Equity

John Doe currently owns 100% of the Commercial Bank, Inc.

2.5 Exit Strategy

The Management has planned for three possible exit strategies. The first strategy would be to sell the Company to a larger entity at a significant premium. Since, the financial management and commercial banking industry maintains a very low risk profile once the business is established; the Management feels that the Company could be sold for ten to fifteen times earnings. The second exit scenario would entail selling a portion of the Company via an initial public offering (or “IPO”). After a detailed analysis, it was found that the Company could sell for twenty to thirty times earnings on the open market depending on the business’s annual growth rate and strength of earnings. However, taking a company public involves significant legal red tape. Commercial Bank, Inc. would be bound by the significant legal framework of the Sarbanes-Oxley Act in addition to the legal requirements set forth in form S1 of the Securities and Exchange Commission. The Company would also have to comply with the Securities Act of 1933 and the Exchange Act of 1934. The last exit scenario would involve the use of a private placement memorandum to raise capital from private sources. This is also a significantly expensive process that requires the assistance of both an experienced securities law firm and an investment bank. Funds would be raised from private equity and merchant banking sources in exchange for a percentage of the Company’s stock.

3.0 Products and Services

Below is a description of the commercial banking services offered by the Company.

3.1 Customer Accounts

The primary service offered by Commercial Bank, Inc. is the management of checking accounts, savings accounts, and money market accounts. The bank, in turn, will use these deposits for financing customer loans and for making acquisitions of debt instruments in the secondary markets. The Company will provide Visa/MasterCard branded debit cards that can be used in any ATM or at stores that accept EBT payments. At all times, the Company will comply with the myriad of federal, state, and central bank regulations (specifically Regulation U) that guide the operations of thrifts, trusts, and financial companies.

3.2 Loans

Through its branches, the business will be able to provide its customers with a variety of lending products including: • First time homebuyer mortgages • Second mortgages • Home equity lines of credit/loans • Commercial Mortgages • Mortgage refinancing • Automotive Loans • Marine Loans • Business Loans (SBA and traditional commercial loans) • Student Loans • Debt Consolidation • Credit Cards (Secured, Unsecured, and Prepaid Cards)

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the banking 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 sluggish. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue for a significant period of time, at which point the economy will begin a prolonged recovery and sluggish growth period.

4.2 Industry Analysis

In the United States there are over 60,000 businesses that operate as depository credit institutions. Among these business, aggregates receipts 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. The Internet has revolutionized the way that many lenders do business. It is not uncommon for small lenders (and thrifts), like Commercial Bank, Inc. to lend among a broad geographical base and to a wide variety of clients that have varying incomes and credit qualities. Additionally, since the Internet has created a method of receiving information at a much faster rate, information relating to the credit quality of borrowers is readily available. The Company will pride itself on its ability to make fast credit decisions for clients.

4.3 Customer Profile

The Company has established several lending procedures that will ensure that the Company’s default rate is less than 1.5% of the Company’s total loan portfolio. Among people that will use the Company’s services for borrowing money, Management has developed the following demographic profile: • Male or Female • Between the ages of 28 and 65 • Household income of $25,000+ • Will borrow for an automotive or home purchase.

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

Commercial Bank, 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 Commercial Bank.

5.1 Marketing Objectives

  • • Establish relationships with industrial registered banks within the United States.

  • • Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.


5.2 Marketing Strategies

Management intends to use a number of marketing strategies to immediate generate depositors and borrowers for Commercial Bank, Inc. The Company intends to use traditional print and media advertising as well as online sales tactics which will further increase visibility of Commercial Bank. Commercial Bank, Inc. also intends to use an online based marketing campaign to develop its customer base. Primarily, the Company will use search engine optimization techniques that will increase the Company’s visibility when selected key words are used among major search engines. For instance, when a person does a Google search for banks in New York metropolitan area, the Company will appear on the first page of the search. This strategy is technically complicated, and the Company will use a search engine optimization firm to develop the Company’s visibility on a non-paid basis. Management expects that a SEO firm will place large amounts of linking data and text specific keywords into the business’s website, which will allow the Company to appear more frequently among search engines. A majority of web portal and search engine companies use very complicated algorithms to determine a website’s relevance in relation to a specific keyword. SEO firms place text and tags on the website to increase the rank of a specific website. The business will regularly distribute a number of flyers while concurrently engaging in a massive grand opening in order to inform potential depositors and borrowers of the Company’s banking operations. The grand opening period will last three to six months depending on the success of the marketing campaign. Additionally, higher interest rates and lower loan rates will be used in order to convince people to switch their checking accounts and loan needs to Commercial Bank, Inc.

5.3 Pricing

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.

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

  • • Commercial Bank will have an annual revenue growth rate of 20% per year.

  • • The Owner will acquire $10,000,000 of equity funds to develop the business.

  • • The Company will earn a compounded annual return of 30% on its proprietary investment portfolio.

7.2 Sensitivity Analysis

The Company’s revenues are sensitive to the overall condition of the financial markets. Revenues derived from the lending portfolio are directly tied to the prevailing prime credit interest rate. As such, the Company must strive to invest in high credit quality investments that have ‘staying power’ during times of economic recession or pullback. Management will enact stringent credit control and screening policies to ensure that losses resulting from defaulted loans are kept below 1.5% of the Company’s closed loan portfolio.

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