What do I need to include on a good loan proposal?

When preparing your loan proposal, include the following points:

The Basics

  • Include the intended purpose for the loan, the exact amount necessary, and why it is needed.
  • Don’t forget to mention who you are, as your proposal will not always be reviewed by the lending officer you may have met with originally. Include your business name, physical and mailing address(es), business officers’ names and their social security numbers.

Description

  • Take the time to discuss the type of business you have, how long you’ve been in business, your current business assets, number of employees and any other important information to describe your business.
  • Include your ownership, including the legal structure of your business.

Key Person Profiles

  • This is your chance to brag on your owners, managers and key personnel. Write a short statement about each one, giving details about their work history, education, background and responsibilities with your firm, and their accomplishments and skills.

Goods, Services and Market Environment and Information

  • Clearly describe the products or services your company provides, as well as the markets that purchase those products or services. Discuss key competitors by name, and how you plan to continue to compete successfully against them, including what your business will do to retain and grow your client base.

Financial Details

  • You should include both your own personal financial statements as well as those of any other business owners.
  • If your business is a well-established entity, include income statements and balance sheets for the past three years. If yours is a new business, then a projected balance sheet and income statement is fine.
  • Specify any collateral you are offering to provide as security for the loan.