Kathy Elliot has decided that she will start an Internet company to sell reliable used cars to customers nationwide. She has decided to use the sole proprietorship business format. Elliot's next step is to write a formal before she applies for a business loan.

Business Plan

Explanation:

In this question, we are asked to state what is to be written by a sole proprietor before she goes on to apply for a loan at a bank to finance her business.

Before Kathy Elliot proceed for the bank to apply for a loan to finance her internet business, she needs to write a business plan first.

Generally, a business plan is a piece of document written by an entrepreneur which serves to describe the business’ nature I.e what kind of business it would engage in, the marketing and sales plans of the business, the funding source of the business and the amount of profit that is expected to be generated by the business.

It must be noted that business plans can serve a whole lot of purposes or usefulness. While some are written for educational purposes, some business plans can be written to access funds for the business. This is what is done in the case of Kathy Elliot before she intends approaching the bank for a loan

business plan

Explanation:

A business plan is a formal written document that serves as the blueprint that contains all necessary financial and operational details of a business. A business plan gives insight and direction to a business, as it tends to help a business maintain focus.

It usually contains information of the profile of the business, the aim and objectives, SWOT analysis, market strategy, as well as the financial aspects that include the projected profit and loss. A business plan is vital document for any business, whether new or old.

For any investor that would want to invest in any business, one of the most important document of interest that they would require, is a formal business plan. There is actually no way any investment would give out loan to any business without a business plan.  

For Kathy Elliot to secure a business loan, a formal business plan is highly needed, as it gives an investor a good view of what is planned, how the plan would be executed, and how bankable the business is.

statement of owner"s equity;