How to Write a Loan Proposal

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.

Contact our Loan Professionals to get advice on how to write your loan proposal

A Well Written Loan Proposal Contains:

• Personal Information
• Business Description 
• Management Profile
• Market Information
• Financial 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.