Applying for a business loan may seem daunting, however, our friends at BDC have prepared a guide to preparing a winning loan request.
Here is some recommended information/documentation to prepare for an effective loan proposal:
1) Historical financial information:
a. Financial statements will help lenders assess the state of your business.
2) Identify your investment in your business or the collateral you are willing to offer in exchange for a loan:
a. This will demonstrate your commitment to your company’s success and reduces the lender’s risk.
3) Check your credit score and be familiar with personal financial situation :
a. Lenders look at these factors to assess how you have previously managed your debt.
4) Prepare a business plan including financial projections for the next two years:
a. Lenders want to see that you’ve done your homework and know how the loan will assist in meeting business goals.
5) Be clear on the amount of money you need and the loan terms that you are expecting:
a. Ensure that the loan amount and repayment terms work for your business to ensure that you do not overextend your business.
To learn more about how to effectively prepare a loan proposal, click here.