Preparing A Winning Business Loan Proposal
Preparing an effective, well-documented commercial loan proposal is the first step toward getting the money your business needs from a bank, (according to www.bdc.ca)
Your small business loan proposal will often be the first contact a banker has with your company. So, you need to craft a document that presents your business in the best possible light.
The goal is to persuade the banker that you are ready and able to make a success of your business and repay the loan.
The key part of proposals for small business loans is the business plan. Take the necessary time to do a thorough job of preparing it, ensuring it covers the following sections:
Executive summary: This section provides a concise overview of your business. It briefly describes your company, its industry and its competitive advantage.
Description of the company: In the main part of your business plan, you should fully describe the history, current operations and strategy of your business.
Management team experience: Show the skills, experience and qualifications of each member of the management team.
Key financial data: This section shows the financial strength of your business. Provide financial statements as well as forecasts for the next two to three years.
Marketing plan: Provide a marketing plan to answer these key questions: Is there a proven market for your product or service? Who are your competitors and what are their strengths and weaknesses? What is your client profile? What is your key competitive advantage?
Production plan: Your banker will want to know if you have the operational capacity to handle your projected sales.
Human resources management: Demonstrate that your business has the ability to recruit, develop and retain the right people to move your business project further.