Loan Proposal Format

Loan approval is depends on how you will present yourself as well as your business.  The lenders make it sure that you will repay your proposed loan and you have sufficient assets (collateral) in case the loan goes into default. It is your duty to give your lenders an assurance that you will be able to pay your loans. A well written proposal should be prepared to improve your chances of getting a loan. Your proposal should contain the following items.

Cover Letter – It should not more than one or two pages long.  Just give details how the loan will be used.

General Information – It includes the business name, names of owners, business address as well as Social Security number of each owner.

Business Description – Business nature and history should be included as well as the business age and number of employees and current assets. Also, the business structure must be included

Management Report – Have a short report regarding each owner such as their education, background, experience, skills and accomplishments.

Market Report – Classify your business product and business markets.  Cite your marketing strategy to compete with your competitors. Also, identify your prospective customers.

Financial Report – Include your balance sheet and income statement for the past three years, if your business is new, create your projected balance sheet and income statement. Present your personal financial statement as well as the other owners of the business. Finally, identify the collateral you are willing to guarantee as the security for the loan.

Photographs – Sometimes, it is necessary to include the interesting and attractive photos of your business such as product and equipment. You may caption some of the photos to tell the story what the lender want to know.

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