Approval of your loan request depends on how well you present yourself, your business, and your financial needs to a lender. Remember, lenders want to make loans, but they must make loans they know will be repaid. The best way to improve your chances of obtaining a loan is to prepare a written proposal. A well written loan proposal contains:

General Information

• Business name, names of principals, Social Security number for each principal, and the business address.
• Purpose of the loan exactly what the loan will be used for and why it is needed.
• Amount required the exact amount you need to achieve your purpose.

Business Description

• History and nature of the business details of what kind of business it is, its age, number of employees and current business assets.
• Ownership structure details on your company’s legal structure.

Management Profile

• Develop a short statement on each principal in your business; provide background, education, experience, skills and accomplishments.

Market Information

• Clearly define your company’s products as well as your markets.
• Identify your competition and explain how your business competes in the marketplace.
• Profile your customers and explain how your business can satisfy their needs.

Financial Information

• Financial statements balance sheets and income statements for the past three years. If you are starting out, provide a projected balance sheet and income statement.
• Personal financial statements on yourself and other principal owners of the business.
• Collateral you would be willing to pledge as security for the loan.