Applying for a small business loan can be exciting and stressful at the same time. For the best results, and to increase your level of trust, be prepared during a visit to the lender you have for your business loans interview. Once your business plan preparation, start preparing for the loan through a loan proposal to present to the loan proposal should lender.
The some important information, and many details, both about yourself and your business or business idea. It should be who you are, how much money you need and where the money is spent, how you intend to repay the loan and what you plan to do in that you can not repay the following loan.
The are essential elements to proposal.
1 In your loans. Summary.
This listed should be first in your proposal, but will be written last. It should be clear, concise, accurate, inviting information about your company or business ideas. It should summarize how the proposed loan will be used, how they will be repaid and how it will benefit your company. Remember, your competitors in the summary of your loan proposal, and point out features of your company that are different from your competitors.
2. Management Profile Profiles.
The section of the loan proposal should explain what is most important is who you are. Be prepared to find out everything about yourself and your experiences. Do you have a current resum as part of the loan proposal, as well as a summary of your skills, qualifications and other credentials for himself, but also for all the other owners and the key members of management team.
3. Business Description.
It & 39; s not necessary, the same information that you have on your business plan, as described in your proposal loans. However, you must do today, a solid description of the company. Include a brief history of the company in loans and your proposal in detail the current activities. If this is a new company, explaining the details of the transaction, which will be developed. Their aim will be to show that they fully understand your markets, the competition in the industry, including the latest trends or risks, and how you plan to overcome potential dilemmas. If the loan is for an existing business, include literature, the details of your products or services, such as electricity sales sheets, brochures or catalogs. Add attachments to your loan proposal for this section, as the letters from suppliers, customers or other business partners references. Demonstrate through these letters that you excellent customer service, and you pay back your creditors.
4. Business Projections.
Create " at least two years worth of projected profit and loss accounts and cash flow statements. Their forecasts should be clearly stated and, most importantly, be realistic in nature. In general, you probably will not need to " worst case " or " " best case scenario, unless the lender calls for you to write that the projections. However, you should be prepared to answer questions about what to do if some of your projections do not function as planned. For example, if you expect to receive a large, new contract or customer based on improvements to the business loans, and never by this contract, it could change your loan proposal drastically.
5 projections. Financial Statements.
Your loan proposal should both business and personal financial statements. Be aware that the lender will be fully analyze the history of the consolidated financial statements, the calculation of key figures. Be prepared to point out any significant trends have shown that you can use in an introductory paragraph.
6. Loan Purpose.
One the most important parts of your loan proposal is a detailed description of how to use the loan proceeds. Have a good understanding of the type of loan that you need, and remember, the proceeds of the loan in your cash-flow forecasts, as well as the interest on your income statement.
7 projected. The repayment Plans.
Repayment plans should also be in your financial projections section of the loan proposal, but details of the repayment should be detailed separately. Suggest that you want, and the preparations for negotiations with the financial institution. The lender will look at a number of factors, such as the overall risk of lending you the money. Understandably, this will impact on the repayment terms that they are willing to offer for your business.
Especially if your credit is good, and even if your credit is not so good, remember that your loan proposal, which you with the Bank, a deal, it is money. Do not go into the question of the lender for a " performance. " Instead, enter the conversation with your credit proposal goal in mind, namely, focusing on how much money you need, and remove the idea, in the meeting, ask how much they are prepared to lend. Never in a meeting ask for a loan, ask whether they lend to. If this first lender will not approve your loan proposal to have confidence that a different. Computer & Technologies.com
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