Micro-enterprises in most cases have a small turnover, which in itself imposes financial discipline and sound financial management inside the company. This means that micro-enterprises must have an appropriate cash-flow to service all the needs of production or trade. 
 

For this purpose micro-enterprises must have a good financial plan and also a back up for all possible contingencies that might affect cash-flow. 
 

A financial plan should be made according to the seasonality of the business and according to the business plan of the company. 
 

The financial plan and business plan of the company should be realistic and include sound analysis with measurable indicators. 
 

This means that the entrepreneur should express the true position of the business in respect of: market, employees in the company, quality of the products, prices and other relevant variables and indicators (depending on the specific sector and market segment). 
 

If the company is a startup, then the financial plan is not needed, but in this case the business plan should be more detailed and should more realistically and credibly present a strong value proposition for the company. 
 

Most financial institutions, after accepting a loan request, require the company to provide a business plan. 
 

This business plan should contain:
•    The Executive Summary
•    Business Overview
•    Operations Plan
•    Market Analysis
•    Products and Services
 

•    Sales and Marketing
•    Competitive Analysis
•    Management Team
•    Financial plan 
•    Projection
 

Those are the parameters which will be analyzed in detail by every financial institution when looking at a loan application.
 

One of the most important parameters for investors or banks is the period of return of the investments.  This means that the micro-enterprises with biggest potential for growth will be a target for these financial institutions. 
 

What period the micro-enterprise can return the investment will determine the terms of the loan in terms of interest rate and repayment schedule (maturity). If the financial institution decides that the risk is lower, then the terms of the loan will be also be more flexible and with smaller interest rate.