An effective way of speeding up the application process and making a good impression on your lender is by preparing a loan proposal. A loan proposal gives an overview of the different aspects of your business, and could include the following information:
- General information – Provide your business name and address. Give precise details about the loan and what it will be used for. Explain why you need the loan and how it will benefit your business. Give exact figures for the total loan amount and proposed repayment period.
- Business description – Explain the history and nature of your business. Outline your number of employees, business assets, ownership structure and legal structure.
- Management profile – Provide a short statement for each member of your management team. Include background, education, experience, skills and accomplishments.
- Market information – Define your products/services and your markets. Profile your customers and explain how your business satisfies their demands. Identify your competition and your competitive edge.
- Financial information – Provide balance sheets and income statements from the past three years. List all the available security. Also provide a personal financial statement on yourself and other owners of the business.