What do I need to include in a good loan proposal?
The following main points should be contained in a good loan proposal:
- Reason for the loan: the exact purpose of the loan and why it is necessary.
- Amount needed: the specific amount needed to reach your goal.
- Business name and address, names of officers and their social security numbers.
Description of Business
- Describe the type of business you have, its age, current business assets, and number of employees.
- Structure of ownership: describe the legal structure of the company.
- Prepare a short statement that is focused on each principal in your business; give details about education, background, accomplishments and skills.
- State clearly the products of your company as well as its markets. Name the competition and explain how you plan to compete in the market. Describe what the business will do to satisfy the needs of its customers.
- Submit your own personal financial statements as well as those of the principal business owners.
- Financial statements: the income statements and balance sheets for the past three years. If you have a new business, provide the projected balance sheet and income statement.
- Specify the collateral that you are able and willing to give as security for the loan.