# Financial projections for a business loan

Source: https://businessloanbroker.ai/tools/financial-projections/
Site: BusinessLoanBroker.ai (powered by Levr)

> Build a 12 month cash flow projection a lender can read: revenue, gross profit, fixed costs, the new loan payment, net cash flow, ending cash and the debt service coverage ratio. Copy as CSV.

A lender wants to see the loan payment inside your cash flow, month by month, and whether coverage holds. Enter nine numbers and the projection, the chart and the debt service coverage ratio update as you type.

## How to make the projection credible

Start month one at the revenue your last three bank statements actually show. Keep monthly growth modest unless you can name the reason, such as a signed contract or a second location opening. Use the gross margin from your year to date profit and loss. Put every fixed cost in, including the owner's pay. The [financial projections guide](https://businessloanbroker.ai/guides/financial-projections-for-a-business-loan/) lists the reasonableness checks underwriters run.

## Reading the result

The coverage ratio is gross profit minus fixed costs, divided by all debt payments including the new loan, over the 12 months. Banks typically want 1.25, SBA lenders 1.15. If the lowest month end cash goes negative, the plan needs a smaller loan, a longer term, or a different product; the [borrowing calculator](https://businessloanbroker.ai/tools/how-much-can-i-borrow/) shows what still fits.

## Questions and answers
**Does the projection include taxes and owner draws?**

Only if you put them in fixed costs. Lenders usually look at cash flow before tax for coverage but will ask how taxes and draws are covered.

**How do I get this into my business plan?**

Copy as CSV, paste into a spreadsheet, and attach it as the projections page. Then reference the coverage ratio in the repayment section of the plan.

## Related
- [Business plan for a loan, built with AI](https://businessloanbroker.ai/tools/business-plan-for-a-loan/)
- [Financial projections for a business loan](https://businessloanbroker.ai/guides/financial-projections-for-a-business-loan/)
- [DSCR calculator](https://businessloanbroker.ai/tools/dscr-calculator/)
- [DSCR explained: the cash flow test lenders use](https://businessloanbroker.ai/guides/dscr-explained/)

## Apply
Apply for the business: https://apply.businessloanbroker.ai/signup?utm_source=direct&utm_medium=organic&utm_content=md-financial-projections
MCP server for AI agents: https://mcp.businessloanbroker.ai/mcp (docs: https://businessloanbroker.ai/agents/mcp/)