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Companies Micro, small loan proposal

Apply for a small business loan can be stressful and exciting but at the same time. For best results and increase your level of confidence, be prepared when you visit to the lender that you have chosen for your business loan interview.

You should be who you are, how much money needs and where money is spent, how you intend to repay the loan, and what you plan to do in the, even that may not pay off the loan.

The following are key elements to be included in your loan proposal.

1. Overview.

This should appear for the first time in its proposal, but writes at the end. It must contain clear, concise, accurate, information about your business or your business ideas-inviting. It must summarize the proposed loan will be used, how that will be paid, and how it will benefit your business. Remember than its competition in the summary of its proposal for a loan, and point out the characteristics of your business that are different from their competitors.

2. Management of profiles.

Profile of the loan proposal management section should explain, most importantly, who you are. Be prepared to reveal all about you and your experience. You have a current resumZ includes as part of the loan proposal, as well as a summary of their skills, qualifications, and other credentials for yourself, as well as for all owners and other key members of its management team.

3. Description of the company.

It is not necessary to put on record the same information mentioned in your business plan and your loan proposal. However, it is necessary to present a solid description of the company. Include a brief history of the company in your loan application, and the detail of the current activities. If it’s a new business, explain the details of the deal which will run. Its objective will be to demonstrate clearly that you fully understand their markets, competitors, and industry, including current trends or risks and how will overcome those potential dilemmas. If the loan is for an existing business, they include the literature data of your products or services, such as current sales, brochures or catalogs leaves. Include attachments to the proposal of a loan for this section, such as letters from suppliers, customers or other business references. Prove through these letters which provide excellent service to the customer, and pay its creditors.

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4. The business projections.

Create worth for at least two years of projected income statements and statements of cash flow. Its projections must indicate clearly and, above all, realistic in nature. In general, you probably won’t have to present “the best” or “worst case” unless the lender asks him to write the projections in this way. You should, however, be prepared to answer questions about what they are going to do if some of their projections do not go as planned. For example, if he is expected to obtain a contract of great magnitude, new customers on the basis of improvements made to the business loan, and that the contract is not processed, could change its projections proposed loan drastically.

5. Financial statements.

Your loan proposal should include both business and personal financial statements. Keep in mind that the lender fully analyze the history of its financial statements, the calculation of all relationships. Be prepared to point out the most significant trends that has been shown in an introductory paragraph.

6. The purpose of the loan.

One of the most important parts of your loan proposal is a detailed description of how to use the loan proceeds. Have a good understanding of the type of loan you need, and remember to include the loan proceeds in its projections of cash flow, as well as the interest on your account of projected results.

7. Payment plans.

payment plans must also be set in the financial projections of the loan proposal section, but the details of payment plans must be detailed separately. Propose the terms you want, and to prepare for negotiations with the financial institution. The lender will take into account a series of factors such as reviewing the overall risk of lending money. Understandably, this will affect the repayment terms that are willing to offer for your business.

Especially if your credit is good, and even if your credit is not so good, remember that in your loan proposal, is offered the Bank an agreement that makes them money. Not going to ask the lender for a “subsidy”. Instead, enter elEntrevista with the aim of the proposal for a loan in the mind, i.e. focusing on the amount of money you need, and eliminate the idea of going to the meeting asking how much they are willing to lend. Never go to a meeting asking for a loan, wondering if they will not pay. If this first lender does not approve your loan proposal, have confidence that a different will.