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Lending institutions typically look to a potential borrowers loan proposal for evidence that your business has strong management, significant experience, and a thorough understanding of the marketplace.

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How to prepared a Loan proposal: Business plan play a very important role in a business process. This plan describes the business' mission and objectives as well as how entrepreneurs intend to achieve these goals. On the other hand, the business plans is also an essential foundation for a small business loan application. Lending institutions typically look to a potential borrower's loan proposal for evidence that your business has strong management, significant experience, and a thorough understanding of the marketplace. They'll also look for relevant financial information showing net worth and sales projections that will make good on your ability to repay the loan. Lastly, any lender will want to know about your suppliers, distributors, employees, and manufacturing relationships. So how do you go about piecing all these components together into a winning loan proposal? Remember, lenders do want simply to make loans - they want to make loans to companies that can repay them. Below are some tips that will help your business improve its chances of obtaining a small business loan with a properly prepared written proposal. The best advice you can get on this topic is from the Small Business Administration (SBA) Finance Start Up resources. ...read more.


You may also need to submit your income tax returns for the previous three years. * Loan Purpose - This is why you are doing the paperwork in the first place! Explain in a detailed statement how you will use the funds. * Amount - Be realistic about what you need and confident about how much you will be loaned. You are negotiating your future business growth after all. * Repayment Plan - These will be assumptions, since you don't know yet what the lender will finance. Outline your preferred repayment terms, but assume that this will need to be negotiated with your lender based on their risk assessment of your business. * Collateral. Describe collateral you would be willing to pledge as security for the loan. Every loan program requires at least some collateral that can be sold in case the cash generated by the small business isn't sufficient to repay the loan. All loans should have at least two identifiable sources of repayment. The first source is ordinarily cash flow generated from profitable operations of the business. The second source is usually collateral pledged to secure the loan. ...read more.


Have, at your fingertips, full details of the services utilised, services you may tap in the future and fee revenue generated by the lender as a result of its association with you. You should use this information to win a point or obtain a concession when negotiations are under way. Entrepreneurs also need to establish their negotiation strategies in advances before go for the bank loan interview. They need to determine what aspect of the financing arrangement are highly important to them and what aspect are prepared to deal on or seek trade-offs and what should prepared to give up early to demonstrate a spirit of co-operation. Entrepreneurs must always determine the risk profile of the business by identify the weaknesses of the business and where it may be vulnerable in the eye of a financier. There have several important factors that the entrepreneurs really need to be take care when there are negotiated with the financier. There are Interest rate payable, repayment schedule, security arrangement, the total amount of fee payable and etc. Such for an example, entrepreneurs need to to consider they wish to select between the ficed or variable interest rate. If variable, link the interest rate to the market indicator. Advance http://www.finweb.com/loans/your-business-loan-proposal.html http://www.allbusiness.com/banking-finance/banking-lending-credit-services-commercial/11725601-1.html http://www.sba.gov/content/how-prepare-loan-proposal http://www.entrepreneurship.org/en/resource-center/preparing-a-loan-proposal.aspx http://www.slideshare.net/airenamayamu/how-to-make-a-winning-loan-proposal-by-airen-amayamu http://www.journalofaccountancy.com/Issues/2010/Aug/20102671.htm http://files.ali-aba.org/thumbs/datastorage/lacidoirep/forms/PREL0901-Ward_thumb.pdf ***** http://ezinearticles.com/?Small-Business-Loan-Proposal&id=123011 ...read more.

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