Financial Plans

If you are looking to obtain a business loan, it is always better if you look and are prepared.

Approval of a loan ultimately depends on how well you present yourself, your business situation, and your financial needs to the lender.

It is important to remember that lenders want to give away money, but they must process loans they know will be repaid. So by far, the best way to improve your chances of obtaining a loan is to prepare a written financial plan.

A well-written financial plan and loan proposal should contain:

General Information

• Business name, names of owners and directors (if different), contact details for owners and directors, and the business address.
• Purpose of the loan – a description of what the loan will be used for and why it is needed and over what period you would anticipate paying it back.
• Amount required – the exact amount you need to achieve your purpose.

Business Description

• Details of what kind of business it is, how many years the business has been established for, the number of employees and current business assets.
• Ownership structure ­ details on your company's legal structure.

Management Profile

• Develop a short statement on each principal and senior manager within your business; provide background, education, experience, skills and accomplishments.

Market Information

• A description of your company’s products and market segments and any competition that you have.
• A brief profile your customers.

Financial Information

• Financial statements – balance sheets and income statements for the past three years.
• Collateral you would be willing to pledge as security for the loan.