Starting or expanding your business is an exciting venture. You have the vision, the expertise, and the confidence in yourself and your team. Now it is time to secure the capital you need to set your plan in motion. To find the best terms available, use NowLoan.co.uk and give your business the edge to achieve success.
Here are 4 simple tips for writing a business loan proposal.
Get Your Papers Together
You can sell and communicate your passion as well as anybody. However, your financial institution will want concrete proof of your financial position. All the ideas in your proposal will need to be backed up by documentation.
Tax Returns Profit and loss and balance sheet business assets current loan documents including repayment historyForecasts and projected figures. Personal credit record client testimonials, references and positive media attention.
Define Your Plan
The most convincing proposals are those that have a solid sense of direction. Before you can sell, you need to convince yourself.
Review or even update your mission and how this project takes you to the heart of it. List your objectives and goals for the short-term, medium-term, and long-term. Clearly define and research your target customers and the state of the market. Work out all the details of staff, production, distribution.
How to Write a Convincing Business Plan
A business plan is a short document that spells out how your business works, where it is going and how you plan to achieve those goals. Give your plan the following structure.
Executive Summary- Brief description of your company, industry and the project that requires financing.Financial Data- The strength in the business will be proven by the track record. Use at least 3 years of returns to display a history of achieving your goals. Your Team- Highlight the skills and qualifications of your talented managers and key employees. Marketing- Display that you know who your customers will be, that there is a proven need for your product and that you have a competitive advantage. Production Plan- Illustrate that all of the details of implementing your plan have been thought out and that the project is ready to hit the ground running.
Address Your Risks and Shortcomings
A business plan is all about selling yourself and focusing on how the venture will succeed. Still, lending officers want to know how you plan to overcome risks. When I was a lending officer we had a saying; “Banks don’t take risks. People do.” The banker wants to know how you will shield the bank from potential losses.
What are the shortcomings or risks to your plan? How will changes or trends in the market affect your business over time? If you don’t meet your forecasts, how much of a shortcoming can you survive? Demonstrate that you have thought out every possible scenario and have contingency plans in place.
Financial institutions are eager to make loans. They are incentivized to fit your proposal into their requirements for approving the loan. So give them the information they need to say “Yes!”
Always put your best foot forward and focus on why you are confident that this venture will succeed. Share your excitement and passion.
When your business is ready to grow, NowLoan.co.uk is excited to provide the foundation for your success.