The development of a comprehensive business plan is a key strategy for new businesses looking to raise funds, an expert has claimed.

According to the head of business marketing at the Royal Bank of Scotland (RBS), Steve Richards, the creation of a business plan that incorporates cash flow forecasts is key to the creation of an overdraft facility, reports bCentral.

However, RBS also noted that prospective start-ups would usually contribute financially to the setting up of their enterprise.

"[A business plan shows that] somebody is thinking and is organised around their business," said Mr Richards.

"Cash flow is really the key thing to make sure they can fund their business going forward - the gap between sales and payment," he added.

RBS offers a range of banking products and services to a range of clients, including business and corporate customers.