Approval of your loan
request depends on how well you present yourself, your business, and your
financial needs to a lender. Remember, lenders want to make loans, but they
must make loans they know will be repaid. The best way to improve your chances
of obtaining a loan is to prepare a written proposal. A well written loan
proposal contains:
General Information
· Business name, names
of principals, Social Security number for each principal, and the business
address.
· Purpose of the loan -
exactly what the loan will be used for and why it is needed.
· Amount required - the
exact amount you need to achieve your purpose. Business Description
· History and nature of
the business - details of what kind of business it is, its age, number of
employees and current business assets.
· Ownership structure -
details on your company's legal structure.
Management Profile
· Develop a short
statement on each principal in your business; provide background, education,
experience, skills and accomplishments.
Market Information
· Clearly define your
company's products as well as your markets.
· Identify your
competition and explain how your business competes in the marketplace.
· Profile your
customers and explain how your business can satisfy their needs.
Financial Information
· Financial statements
- balance sheets and income statements for the past three years. If you are
starting out, provide a projected balance sheet and income statement.
· Personal financial
statements on yourself and other principal owners of the business.
· Collateral you would
be willing to pledge as security for the loan.
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