Preparing an effective, well-documented commercial loan proposal is the first step toward getting the money your business needs from a bank, according to www.bdc.ca.
Your small business loan proposal will often be the first contact a banker has with your company. So, you need to craft a document that presents your business in the best possible light.
The goal is to persuade the banker that you are ready and able to make a success of your business and repay the loan.
The key part of proposals for small business loans is the business plan. Take the necessary time to do a thorough job of preparing it, ensuring it covers the following sections.
Executive summary: This section provides a concise overview of your business. It briefly describes your company, its industry and its competitive advantage.
Description of the company: In the main part of your business plan, you should fully describe the history, current operations and strategy of your business.
Management team experience: Show the skills, experience and qualifications of each member of the management team.
Key financial data: This section shows the financial strength of your business. Provide financial statements as well as forecasts for the next two to three years…
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