Do you want to generate a certain level of sales? How to prepare a winning business loan proposal Share Preparing an effective, well-documented commercial loan proposal is the first step toward getting the money your business needs from a bank.
In fact, when confronted with the kind of growth projection required to interest a venture capitalist, a banker may be turned off. Strategies, Mission, Objectives and Milestones: Marketing Strategies, Advertising and Promotion; Sales forecast and cost of sales; Distribution, Plans for Growth — Define your milestones with dates, budgets and specific responsibilities.
The Industry and Market Analysis: Describe your target market and segment you will focus on, including market demographics, market growth, trends and forecast.
Bankers can usually be counted on to want minimal, if any, input into how the business is run. Create charts and graphs to demonstrate increases in sales or decreases in costs.
What you will do if your business is unable to repay the loan. You should let your lender know that the money will be well spent and there is an opportunity that you would want to tap.
Also include any opportunities and threats that may potentially affect your progress, as well as any rules and regulations your market has to follow. And roughly how many of them are there? Keep it to just one or two pages and be as clear and concise as possible.
Consider how you will manage the start up phase when outgoings can exceed income for some time.
Is your business incorporated? For example, if the problem is that parking downtown is expensive and hard to find, your solution might be a bike rental service with designated pickup and dropoff locations.