LOAN PROPOSAL

Different lenders may require or prefer various pieces of information when reviewing loan proposals, so it is always best to call ahead and inquire about each bank's application and review process to be sure that you put together a loan proposal that meets their expectations. Generally, a loan proposal will include the following information:

I. Cover

  • Name of business
  • Your name and contact information
  • Date
  • Name of lending institution ("Prepared for xxxx")
II. Executive Summary
  • Brief description of your business
  • How the proposed loan will be used
  • How the loan will be paid back
III. Business Description
  • Brief overview of company history
  • Description of products
  • Strengths and accomplishments
IV. Industry / Market Analysis
  • Research on the industry
  • Analysis of competition
  • Target consumer base
  • Sales and marketing plan
V. Top Management Profiles
  • Summary of experience, qualifications, and credentials of top management
  • Resumes
  • Professional and financial references
VI. Financials
  • Projected Balance Sheet » Download
  • Projected Cash Flow » Download
  • Projected Profit and Loss » Download
  • 12-month Sales Forecast » Download
  • Personal Financial Statements » Download
  • Tax Returns
  • Credit Reports (Equifax, Experian, and TransUnion are the three major credit bureaus and each has a process for requesting and obtaining a copy of your credit report.)
VII. Summary of Loan Package
  • Reiterate exactly how much you need and what you will do with it
  • Summarize reasons why you should get the loan
VIII. Appendices
  • Letters of reference, letters of intent, supplier agreements, etc.
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