How To Apply For a Business Loan
Worried about how to apply for a business loan? Although it may seem like a daunting task at first, it can be made less so by careful preparation. When applying for a business loan, you must prepare a written loan proposal. Make your best presentation in the initial business loan proposal and application; you may not get a second opportunity.
Always begin your proposal with a covering letter. Clearly and briefly explain who you are, your business background, nature of your business, the amount and purpose of your loan request, your requested terms of repayment, how the funds will benefit your business, and how you will repay the business loan. Keep this cover page simple and direct.
Provide a written description of your business, including the following information:
Type of organization, Date of information, Location, Product or service, Brief history, Proposed Future Operation, Competition, customers, Suppliers
Management Experience: Resumes of each owner and key management members.
Loan Repayment: Provide a brief written statement indicating how the loan will be repaid, including repayment sources and time requirements. Cash-flow schedules, budgets, and other appropriate information should support this statement.
Proposed Business: Provide a pro-forma balance sheet reflecting sources and uses of both equity and borrowed funds.
Depending on your particular circumstance you may need to provide one or more of the following documents:
Lease, Franchise Agreement, Purchase Agreement, Letters of Intent, Articles of Incorporation, Plans, Copies of Licenses, Letters of Reference, Contracts or Partnership Agreement.
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