NO HANDWRITTEN ANSWERS PLEASE
Describe the loan or investment proposal section of a business plan.
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:-
Executive summary section provide a clear overview of your
business. It briefly describes your company, its industry and its
competitive advantage. It should also describe the business need or
project that requires financing, as well as the amount of money
needed.
Description of the company:-
In the main part of your business plan, you should more 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. Your banker needs to know they have what it
takes to make your project work.
Key financial data:-
This section shows the financial strength of your business. Provide
financial statements as well as forecasts for the next 2 to 3
years.The banker will examine this information closely in an effort
understand your track record and capacity to repay the loan. As in
every part of your small business loan proposal, make sure you are
completely honest and transparent.
Marketing plan:-
Provide a marketing plan to answer these key questions: Is there a
proven market for your product or service? Who are your competitors
and what are their strengths and weaknesses? What is your client
profile? What is your key competitive advantage?
Production plan:-
Your banker will want to know if you have the operational capacity
to handle your projected sales.
Human resources management:-
Demonstrate that your business has the ability to recruit, develop
and retain the right people to move your business project
further.
Include supporting documents as mentioned below;
In commercial loan proposal you need to include the documents that support, explain and boost the credibility of your plan, including:
1.Market studies or other research supporting your conclusions
and forecasts;
2.Documents to support financial data (e.g. copies of leases,
subcontractor estimates, letters of credit);
3.Client testimonials; and
4.Media reports about your company.
5.The purpose of the supporting documents is to show your proposal
is based on facts.
Following are the some of the tips to write an effective commercial loan proposal:-
Use simple, plain language. Avoid technical terms and acronyms. You proposal should be clear, well-structured and easy to read.Don’t forget that your proposal’s purpose is to show your company at its best. Sell yourself! Throughout the proposal, focus on showing why your venture will succeed. Demonstrate that you’ve thought of multiple possible scenarios and that you have contingency plans.Image counts, Consider working with a professional to help you to lay out the document..
NO HANDWRITTEN ANSWERS PLEASE Describe the loan or investment proposal section of a business plan.
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