Business Loan Proposals

In order to start up a business you need to have money. The money is what will secure the office building, office supplies, merchandise, and employees to help you out. Most of us do not have large amount of money running around or saved up. Even if we did we usually don’t have the thousands of dollars it takes to start a business.

The money you receive must come from a lender or investor who will give you a business loan. The best way to convince them that you need this loan and that you will use it to the best of your ability is to put together a proposal.

The first thing you need to make is a cover letter that goes over the whole proposal. This is an introduction of what type of loan you need and what it is for. Make it short and to the point.

Start the proposal by giving general information. This should include the name of the company, address, names of employees, social security numbers, purpose of the loan, how much is needed, and details of the business. You must explain in detail what the money will be used for.

Describe to them what the business is and what type of service you will be providing for people. Also explain to them who will be the owner/owners of the entire business.

Provide them with all of the important market information. Make sure you tell them what type of competition you have and how you can beat them out. It also helps to show who your main customer will be and how you can bring them in.

Give them projected balance sheets and income statements. Any financial statements from the owners and for collateral must be provided.