Many business loan lenders will require that you create a business proposal with your loan application. This proposal is to show lenders that you have an idea of where you want to take your business and how the money that is lent to you will be spent. A detailed, articulate business proposal could be the difference between receiving a loan and being denied.
Here’s a look at what you should include in the different parts of your business proposal.
The Cover Letter
Image by enchiladaplate via Flickr
Image by enchiladaplate via Flickr
Business proposals will start out with a cover letter. The cover letter is where you will introduce your business and talk about what type of loan you are looking to receive. You will also outline how you plan on using the loan you receive.
The Introduction
The introduction to your business proposal is a detailed cover letter. You will introduce your company and talk about the amount you are asking for a loan. You will also detail how you plan on spending the loan money.
The Business Details
After the introduction you will need to provide detailed information about your business. This will include what you plan on doing in the future, what sets you apart from other businesses and how you plan on handling the legal aspect of the business.
Marketing Information
The lender will also want to see that you have plans to market your business and bring in new customers. In the marketing section will you need to outline your plans for marketing and how you plan on bringing in these new customers.
Including this information into your business proposal will help you when applying for a loan.