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Top 10 Business Loan Proposal Templates with Samples and Examples

Top 10 Business Loan Proposal Templates with Samples and Examples

Vaishali Rai

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The best way to predict your future is to create it.

                                                                                             - Peter Drucker.

As an entrepreneur, you know this better than anyone. 

Congratulations on embarking on your entrepreneurial journey and taking the first step toward shaping your destiny. But to continue down that path of success, you might need some funding to turn your dreams into a reality. And that's where business loans play a vital role.

Business loans can provide the capital you need to expand your business, hire new employees, manage unforeseen expenses, purchase equipment, and more. However, securing a loan can be a tough call; you need to have a solid plan in place to convince lenders that your business is worth the investment.

Pitch it to the top floor, or leave it on the ground floor! Unleash Your Inner Proposal Pro with Our Top 10 Business Investment Proposal Templates!

Money can't buy happiness, but a successful business loan proposal can buy everything else!

In the cut-throat competitive landscape, securing a loan can be the difference between success and failure. A well-crafted business loan proposal can help you convince lenders that your business is worth investing in. But crafting a proposal from scratch can be harder than climbing a mountain. 

That's where our business loan proposal templates come in - They are the cheat codes for the loan proposal process, providing a blueprint for a persuasive proposal that lenders cannot resist.

We've delved deep into the vast expanse of the internet to make the most creative and persuasive pre-designed business loan templates that can save you time and ensure that your proposal includes all the necessary elements. From financial projections to marketing strategies, business loan proposal templates have got you covered. 

So grab your pens and papers (or laptops), and let's get started!

No more ghosting! Learn Eight Approaches to Creating a Winning Business Proposal and start closing deals like a Boss!

Template 1: Small Business Loan Proposal PowerPoint Presentation Slides

Crafting a compelling Small Business Loan Proposal has never been easier with our professionally designed PPT Bundle. You can't go wrong with slides that include a captivating cover letter, an easy-to-navigate table of contents, a clear project context and objectives section, a comprehensive company profile page, and a persuasive loan request section. Seamlessly present your proposal with confidence and professionalism.

SMAL BUSINESS an Proposal

Download Now!

Template 2: Business Loan Proposal PowerPoint Presentation Slides

Worried about funding for your business to meet the working capital requirements? Say hello to our Proposal PPT Slides- It is your savior in lean periods, offering financial stability and a chance to expand. With this five-year plan PPT template, help your clients showcase their project objectives, company profile, budget allocation, and even historical financial information. From management activities to marketing strategies, we've got it all covered. 

A Quick tip : Don't forget the credit report, showcasing your client's reliability, creditworthiness, and fair business practices. Grab it now!

Business Loan Proposal

Template 3: Loan Proposal Template PowerPoint Presentation Slides

Got a great business idea but need some funds to get it off the ground? Worry not! With our eye-catching PPT Slides, you can showcase your company's branding, current market stats, and achievements to convince investors to back your vision. There’s more– our customizable PPT graphic allows you to present detailed information on everything from budgets and interest rates to staff costs and outstanding debts.

A Quick tip : Mention references for credibility and impress your audience with a visually appealing and to-the-point presentation. 

Download our financial-backing Loan proposal PPT today!

Loan Proposal Template

Template 4: Commercial Loan Proposal PowerPoint Presentation Slides

Making a brilliant first impression is crucial when pitching a business loan proposal. This user-friendly PPT Template will help you prepare a convincing loan repayment plan and budget allocation. Further, it also lets you showcase your business idea and how you plan to use the funds to grow your business. Woo your investors with a blast from the past! Take them on a journey through your company's history and financials while giving them an exclusive behind-the-scenes look at your operations. Get it now!

Commercial Loan Proposal

Template 5: Project Context And Objectives For Small Business Loan Proposal PPT Presentation Graphics

Want to make your small business loan proposal a roaring success? Well, it all starts with your project context and objectives! Our PPT graphics template will help you outline your goals and paint a vivid picture of how the borrowed funds will help you achieve them. From lease costs to construction expenses to renovations and licensing costs, our template will help your small business put out the best proposal.

Project Context and Objectives for Small Business Loan Proposal

Template 6: Loan Request Budget Allocation For Small Business Loan Proposal PPT PowerPoint Slides

Show your investors you mean business by presenting a well-thought-out budget plan using our PPT Slide. Make it rain with the details like a budget startup, investment, loan amount, and allocation of funds. This shows your investors that you're not just dreaming of profits but are also wise enough to handle the borrowed funds. So, show off your budgeting skills and make them feel confident in investing in your business.

Loan Request – Budget Allocation for Small Business Loan Proposal

Template 7: Company Profile Basic Overview for Small Business Loan Proposal PPT Files

Stop being a stranger; let your potential lenders know who you are! Our loan proposal template will help you introduce your company with a bang. Showcase your business's identity, mission, and values, and give a sneak peek into your company culture. Additionally, it covers customizable sections like name, address, contact, establishment date, and form of organization. Let your personality shine through this quirky and catchy company profile.

Company Profile – Basic Overview for Small Business Loan Proposal

Template 8: Product for Small Business Loan Proposal PPT Introduction

Introduce your business idea in style with our five-stage process loan proposal PPT. Its eye-catching visuals and icons will grab your investor's attention, highlighting your product's key features and benefits. The PPT Template covers important components such as description, general development, relative importance, significant changes, and a five-year goal plan that will allow you to create an impressive product introduction.

A Quick tip : Don't forget to include customer feedback and market analysis to enhance your proposal’s value.

Product for Small Business Loan Proposal

Template 9: Cover Letter for Business Loan Proposal PPT Visual Aids Pictures

Unleash the power of visual storytelling to craft a well-structured cover letter that captivates lenders and gets you the funding you need! Our Cover Letter Template with visuals will help you create a compelling narrative highlighting your strengths, goals, and unique value proposition. It covers everything from eye-catching graphics to engaging text to deliver a clear message. Ditch those boring, generic cover letters, and download our out-of-the-box template below to craft your winning pitch today!

Cover Letter for Business Loan Proposal

Template 10: Marketing and Distribution for Business Loan Proposal PPT

Let your investors know your plan to dominate the market with our Marketing and Distribution PPT template! Impress them with insights on the number, location, and financial strength of your customers gathered from your marketing surveys. Our template lets you showcase your physical distribution channels and the techniques you use to create demand. Don't forget to mention any seasonal aspects that may affect your business. Download the template now to win your investor's trust!

Marketing and Distribution for Business Loan Proposal

Ready to make some serious money moves? Our templates are here to lend a hand!

In today's world, entrepreneurship is on the rise, and financial aid is essential to turn dreams into reality. The competition to obtain business loans is intense, and every step towards securing one should be well-planned and executed. 

We are certain that our jargon-free templates above will help you present your business plans, financials, and operational strategies in a simple and organized manner. They not only save time by simplifying the presentation process but also create a professional look and provide investors with all the necessary information.

In all, our thoughtfully crafted templates are like your business wingman; they make you look good and give you all the right moves to woo your investors. Don't forget to bring them along for your next business adventure! 

FAQs on Business Loan Proposal Templates 

How do i write a business loan proposal.

Small business loan proposals are the foundation of your business plan. It's like a recipe for success. To cook up a perfect business loan proposal, you need to include some key ingredients:

  • A dash of the executive summary to give a quick overview of your business and its financing needs. Further, it must describe your business’s USP (Unique Selling Proposition) and the amount of money required. 
  • A generous serving of company description , including your history, operations, and strategy. It must include your business's strategy, current operations, and history.
  • A hearty sprinkle of management team experience to show your banker that you've got what it takes. This describes the skills, knowledge, experience, and qualifications of each management team member.
  • A pinch of key financial data to prove your business's financial strength and capacity to repay the loan. Provide financial statements and forecasts for 2 to 3 years. Make sure, to be honest and transparent at this stage.
  • A dollop of your marketing plan to answer some key questions and show your unique advantage. Through this section, your banker will analyze the strength of your client profile and key competitive edge against your competitor’s key strengths and weaknesses.
  • A drop of production plan to ensure your banker that you can handle your projected sales.
  • And last but not least, a side of human resources management to prove you can recruit and retain the best team to make it all happen.

What are the three types of business proposals?

A business proposal is a sales pitch to another business. It aims to secure a partnership by showcasing your business's value to another organization. Let’s discuss the three types of business proposals:

  • Solicited Proposals: It's like a job application but for your business! Many businesses and government agencies issue Requests for Proposals (RFPs) for specific services they need. This kind of proposal portrays your ability to provide the service, projected costs, and delivery dates.
  • Unsolicited Proposals: Sometimes, you have a great idea for another organization, but they haven't issued an RFP. That's when you can develop an unsolicited proposal. This type of proposal must showcase an unidentified need and why the company should hire your business to tackle it.
  • Grants: Who doesn't love free money? Business grant proposals differ from solicited and unsolicited proposals because they provide funding, not work. Grants usually fund businesses or projects, such as medical research or educational initiatives. This type of proposal includes the business’s ability and qualifications to use the funds.

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What is a business loan proposal?

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Starting a business can be the start of pursuing a lifelong dream. But turning a dream into reality requires putting your ideas on paper — especially if you want to secure a small business loan from a lender.

In most cases, lenders will request prospective business owners to present a business loan proposal. This relatively straightforward document informs the lender why you believe your business would be a good investment worthy of a loan. Think of it as a pitch for why you should get the loan and how you plan to repay it.

Key Takeaways

  • A business loan proposal is a streamlined pitch to a lender that explains what you need the loan for and how you would pay it back
  • A good business loan proposal should include financial information about your business, a high-level explanation of how your business operates and a loan repayment plan
  • Business loan proposals are important documents for getting a lender to approve your loan request

Is a business loan proposal different from a business plan?

While a business plan and a business loan proposal may sound similar, they serve different goals. A business plan is more of a guide to your entire business. It takes you through the stages from start-up to operation, lays out how your company will be structured and considers your prospects and how they might affect your plans for the future.

By contrast, a business loan proposal has a simpler purpose: secure funds to start your business. This will typically be a shorter document and includes information most important to the lender, like how you plan to repay the loan in a timely manner.

Why would lenders want a business loan proposal?

Lenders typically want a business loan proposal and a business plan to better understand your business’s financial state and short-term prospects. This allows the lender to understand where your company stands in the market and how likely you are to succeed.

Lenders want to see available cash , projected revenues and other details relevant to your ability to generate profit. Lenders also want to know how much of a risk they are taking by lending you money and the likelihood that their loan will be repaid.

How to write a business loan proposal

A successful business loan proposal should be well-written and thoughtful. You will want to include essential financial documents as attachments in addition to the details about your business.

As for the format of your proposal, there are a few options, but it is best to ask the lender if there’s a preferred format. If the lender doesn’t provide guidance, you can create a document with several sections highlighting essential information for a potential lender.

1. Executive summary

Start by offering the lender information about you and your operation. Provide a brief background on yourself and an overview of your business. You can briefly explain how you want to use the funds, but keep it short as you will provide more details later on.

2. Overview of your business model

The overview should include a short history of operation, legal structure and essential details about operations, including any licensing and your company’s current revenue. You can also include information about the market that you operate in, including industry trends and details about your customer base.

3. Owner investments

Some lenders, like the SBA, require you to exhaust all other financing options before qualifying for a loan. In this section, you should show how much equity you have in your business, what you have invested or any profits. If there are other owners, lenders will also want to see what they’ve invested.

4. Loan request

Here you’ll outline the amount of money you need and how you plan to use it. Explain what you’ll purchase with the funds — like if you plan to use it for fixed assets or working capital — and how you believe it will impact the business. The loan request should also show how you determined the loan amount.

5. Loan repayment plan

The lender will want to know your plan for repaying the loan. Use this section to lay out a repayment schedule based on the loan terms. Make clear what your plan is to ensure payments are made on time and in full and how repaying the loan is likely to affect your overall cash flow. Also, explain how you would pay back the loan in case of a downturn in sales, such as cash reserves. You can include details about pledged collateral here as well.

6. Financial statements

While you’ll want to attach financial statements in full to your business loan proposal, you can provide a brief overview in this section. Provide insight into what your books look like over the last few quarters of operation, including income statements . If your business has any existing liabilities, you can also include those details here.

Additionally, you should include personal financial statements from major stakeholders in the company, usually anyone with 20 percent or more equity. These should be an overview of assets and liabilities and personal net worth for each stakeholder.

7. Income projections

In addition to past statements about your business’s operation, lenders will want to know what to expect from your business in the future. Include your projected income and cash flow statements. Include any details regarding changes you would make to your business if you fall short of projections, and provide at least one year of projections for the lender to consider.

The bottom line

Business loan proposals are important documents for business owners seeking financial support to present to a lender. They provide key details about the business as it currently operates and how a business loan would be used so that a lender can feel secure in providing funding and recouping its investment over time.

Frequently asked questions about business loan proposals

What’s the difference between a business plan and a business loan proposal, how do i write a business loan proposal, related articles.

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How do business loans work?

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example of a good business loan proposal

What can you use a business loan for?

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Business Loan Proposal Template

This business loan proposal template managed to secure funds to over 16,000 clients! If you're unsure of how your business loan requests should look, simply use this completely customizable template and get ready to close the deal! You can change the text, images, colors, your logo - it's all 100% editable.

Business Loan Proposal Template Slide 1

What's in this business loan proposal template

Visually attractive cover.

No matter which industry you're writing a business loan request for, the first impression always matters. In this business loan proposal template, the first thing your creditor sees is a nicely designed cover, fit for a world-class company like yours. From the text, logo, and background image, you can change everything to make it a better fit for your needs.

Visually Attractive Cover

The best way to start your bank loan application is with a direct and straightforward cover letter or executive summary. Use this page to clearly and briefly describe who you are, your business background, the nature of your business or start-up, and how the loan will be used to help your company succeed.

Like everything else in this proposal, it's completely editable - the colors, the text, images, layout - everything.

Summary

Business profile

 Explaining what your business does and the process of using and repaying the loan may sound a bit overwhelming to small business owners. That's why we created a business profile - a page dedicated to the history of your business, along with current activity and results.

It is a perfect place to highlight your business plan, leave some links to your brochures or any other documents that will help soft sell your business.

Business profile

Management experience

The best way to show potential creditors how serious you are about your business is through management experience. Describing the experience, qualifications, and skills of key members of your management team gives you the perfect opportunity to show you understand exactly what your business needs to succeed.

In this business loan proposal template, we've created a whole section for management experience. All you need to do is fill it in!

Management experience

Loan request and payment

This section in the business loan proposal template is all about the numbers. Show precisely why you need business financing, the amount you are requesting, the interest rate, as well as what you will use it for.

Whether you're looking for a small business loan or a large sum of money, this is the place to write it down. Like the rest of this template, every part is editable, from the text and logo to the background image.

Loan request and payment

Financial statements

This is the section the creditor will spend the most time looking at! It is also the perfect place to include your personal financial statements, balance sheets, credit history and reports, tax returns, and any other financial document you see fit for the cause.

Financial statements

Next steps and supporting documents

Once the hard part of writing the loan proposal is done, use this section to attach the proof behind the story you have told. If you're feeling optimistic, you can even add a digital signature box that will allow your creditors to approve your business loan right away!

Next steps and supporting documents

Get Paid Straight from the Proposal

No more messing around with invoices, no more waiting for checks to clear. This proposal template lets you take payments directly from the proposal, using the integrations with PayPal, Stripe, and GoCardless.

Get Paid Straight from the Proposal

Don't take just our word for it

Here is what some of our 10,000 users across the globe have to say

Sara K.

Sara K. CEO & Founder

Shade O.

Shade O. Business Owner

Brent R.

Brent R. Marketing and Advertising

150+ other free proposal templates just like these are also available inside Better Proposals

Financial Planning Proposal Template

This financial advisor proposal is customizable and lets you showcase your portfolio, expertise and anything else you can offer to your clients. Use this financial advisor proposal to get amazing results.

Mortgage Broker Proposal Template

Every mortgage advisor knows how important it is to build a trusting relationship with your clients. Use our mortgage advisor proposal to show your previous work and win over new clients.

Funding Proposal Template

Use this professional funding proposal template to reach out to possible funders and increase your organization's visibility and credibility! The funding proposal is pre-written and saves you time while offering great success.

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Import your contacts from a CRM, receive payments, chat with prospects and manage projects. All in once place. See all integrations

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How to Present a Business Loan Proposal

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It's been said that you never have a second chance to make a good first impression. Nowhere is that more important than when you present a business loan proposal to a potential lender. You can increase your chances of getting a startup loan by following these tips for presenting the loan. 

Business loans are the riskiest loans because business is a risky enterprise. Startup loans are even riskier; the Small Business Administration (SBA) says 50% of small businesses fail in the first five years. A small business can still increase the odds of success by remembering these factors: 

  • The information you provide to the lender.
  • How you present that information. 

Included in this article is a discussion about presenting a business loan proposal to a lender. The information you provide should be in the form of a formal business plan . These tips assume that you already have prepared that business plan and that it's perfect, accurate, and complete. 

Make an Appointment

Lenders, like all of us, are busy people. If you want to impress a lender, call ahead and make an appointment for a specific time. Ask if the company is lending now, and give a brief one or two-sentence description of your business and why you want money, sometimes referred to as an " elevator pitch ."

Talking by phone will save you time if the lender is truly not interested, but remember this is how banks, credit unions, and other commercial lenders make their money. 

In a situation where you aren't sure how to dress, it's always better to be overdressed than underdressed. If you want your loan proposal to be taken seriously, dress like you are serious. 

Understand What a Lender Is Looking For

It's been said that lenders lend money to people who don't need it. In tough financial times, it's even truer. A lender wants to know only two things: 

  • How much do you want?
  • How will you be able to pay it back? 

The answers to the first question are shown in the business plan and financial spreadsheets you will be presenting. You will need a balance sheet, a proposed income statement (P&L), a break-even analysis, and possible sources and uses of funds statement to show where the money will come from and where it will be spent. Larger businesses may use a business requirements document to show how the funds will be used in a big project.

The answers to the second question can be developed as you talk to the lender. Have an understanding of the " 4 C's of credit " and what kinds of credit a lender is looking for. For example, you most likely will be required to provide a personal guarantee for that business loan, which is very common for startups. If you have the personal guarantee documents prepared, it will increase your credibility and the likelihood of getting that loan. 

Be Prepared With Information

Bring all the information needed for the lender to make a decision. This includes personal information on yourself and any possible co-signers, in addition to a business plan and financial documents. You should bring your personal financial statement.

If you think there may be issues with your credit, check your credit score and get a detailed credit report. If you have assets you want to use as collateral, bring information on those assets. You want to be able to answer the lender's two questions above as completely as possible. 

Remember the two things a lender wants to know. Talking about all the wonderful features of your business and how you found the idea for the business takes time and doesn't answer the questions.

The best way to be brief and complete is to have an executive summary of your business plan available for the lender to read. Include some meaningful graphs or charts to illustrate the financial projections you have prepared. 

Plan What You Will Say

You may or may not get an opportunity to talk much, so work on the inverted pyramid method that newspapers use: Start with the most important information, to answer the lender's primary questions. Then, if you have time and the lender appears interested, talk more about your business and what you hope to achieve. 

Use One Loan Presentation To Make the Next One Better

If you get a "no" answer, ask this question: " Under what circumstances would you consider giving a loan to this business?" If the answer is something like, "When hell freezes over," move on. It may be you are asking for too much, you have omitted some key piece of information, or you may need more collateral from your personal funds or a co-signer. Each meeting can be a learning experience and a step to better the experience the next time around. 

Present to Several Lenders at Once

It may take you several banks or credit unions to fine-tune your presentation. Putting together a list of possible lenders helps you see the possibilities. As mentioned above, think out of the box, including credit unions on your list. 

Have a Backup Plan

Know what you can do if you get rejected by lenders. Having a backup keeps your stress level lower, makes you less likely to show desperation and keeps you thinking ahead. 

Consider Other Alternatives

If you have run through your list of possible lenders and you still don't have a loan, don't give up. Look at other sources of funding, such as trade credit, family and friends, or crowdsourcing . Also, you may want to consider scaling down your request. 

example of a good business loan proposal

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Why Do I Need a Business Plan?

Sections of a business plan, the bottom line.

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How to Write a Business Plan for a Loan

How to secure business financing

Matt Webber is an experienced personal finance writer, researcher, and editor. He has published widely on personal finance, marketing, and the impact of technology on contemporary arts and culture.

example of a good business loan proposal

A business plan is a document that explains what a company’s objectives are and how it will achieve them. It contains a road map for the company from a marketing, financial, and operational standpoint. Some business plans are more detailed than others, but they are used by all types of businesses, from large, established companies to small startups.

If you are applying for a business loan , your lender may want to see your business plan. Your plan can prove that you understand your market and your business model and that you are realistic about your goals. Even if you don’t need a business plan to apply for a loan, writing one can improve your chances of securing finance.

Key Takeaways

  • Many lenders will require you to write a business plan to support your loan application.
  • Though every business plan is different, there are a number of sections that appear in every business plan.
  • A good business plan will define your company’s strategic priorities for the coming years and explain how you will try to achieve growth.
  • Lenders will assess your plan against the “five Cs”: character, capacity, capital, conditions, and collateral.

There are many reasons why all businesses should have a business plan . A business plan can improve the way that your company operates, but a well-written plan is also invaluable for attracting investment.

On an operational level, a well-written business plan has several advantages. A good plan will explain how a company is going to develop over time and will lay out the risks and contingencies that it may encounter along the way.

A business plan can act as a valuable strategic guide, reminding executives of their long-term goals amid the chaos of day-to-day business. It also allows businesses to measure their own success—without a plan, it can be difficult to determine whether a business is moving in the right direction.

A business plan is also valuable when it comes to dealing with external organizations. Indeed, banks and venture capital firms often require a viable business plan before considering whether they’ll provide capital to new businesses.

Even if a business is well-established, lenders may want to see a solid business plan before providing financing. Lenders want to reduce their risk, so they want to see that a business has a serious and realistic plan in place to generate income and repay the loan.

Every business is different, and so is every business plan. Nevertheless, most business plans contain a number of generic sections. Common sections are: executive summary, company overview, products and services, market analysis, marketing and sales plan, operational plan, and management team. If you are applying for a loan, you should also include a funding request and financial statements.

Let’s look at each section in more detail.

Executive Summary

The executive summary is a summary of the information in the rest of your business plan, but it’s also where you can create interest in your business.

You should include basic information about your business, including what you do, where you are based, your products, and how long you’ve been in business. You can also mention what inspired you to start your business, your key successes so far, and your growth plans.

Company Overview

In this section, focus on the core strengths of your business, the problem you want to solve, and how you plan to address it.

Here, you should also mention any key advantages that your business has over your competitors, whether this is operating in a new market or a unique approach to an existing one. You should also include key statistics in this section, such as your annual turnover and number of employees.

Products and Services

In this section, provide some details of what you sell. A lender doesn’t need to know all the technical details of your products but will want to see that they are desirable.

You can also include information on how you make your products, or how you provide your services. This information will be useful to a lender if you are looking for financing to grow your business.

Market Analysis

A market analysis is a core section of your business plan. Here, you need to demonstrate that you understand the market you are operating in, and how you are different from your competitors. If you can find statistics on your market, and particularly on how it is projected to grow over the next few years, put them in this section.

Marketing and Sales Plan

Your marketing and sales plan gives details on what kind of new customers you are looking to attract, and how you are going to connect with them. This section should contain your sales goals and link these to marketing or advertising that you are planning.

If you are looking to expand into a new market, or to reach customers that you haven’t before, you should explain the risks and opportunities of doing so.

Operational Plan

This section explains the basic requirements of running your business on a day-to-day basis. Your exact requirements will vary depending on the type of business you run, but be as specific as possible.

If you need to rent office space, for example, you should include the cost in your operational plan. You should also include the cost of staff, equipment, and any raw materials required to run your business.

Management Team

The management team section is one of the most important sections in your business plan if you are applying for a loan. Your lender will want reassurance that you have a skilled, experienced, competent, and reliable senior management team in place.

Even if you have a small team, you should explain what makes each person qualified for their position. If you have a large team, you should include an organizational chart to explain how your team is structured.

Funding Request

If you are applying for a loan, you should add a funding request. This is where you explain how much money you are looking to borrow, and explain in detail how you are going to use it.

The most important part of the funding-request section is to explain how the loan you are asking for would improve the profitability of your business, and therefore allow you to repay your loan.

Financial Statements

Most lenders will also ask you to provide evidence of your business finances as part of your application. Graphs and charts are often a useful addition to this section, because they allow your lender to understand your finances at a glance.

The overall goal of providing financial statements is to show that your business is profitable and stable. Include three to five years of income statements, cash flow statements, and balance sheets. It can also be useful to provide further analysis, as well as projections of how your business will grow in the coming years.

What Do Lenders Look for in a Business Plan?

Lenders want to see that your business is stable, that you understand the market you are operating in, and that you have realistic plans for growth.

Your lender will base their decision on what are known as the “five Cs.” These are:

  • Character : You can stress your good character in your executive summary, company overview, and your management team section.
  • Capacity : This is, essentially, your ability to repay the loan. Your lender will look at your growth plans, your funding request, and your financial statements in order to assess this.
  • Capital : This is the amount of money you already have in your business. The larger and more established your business is, the more likely you are to be approved for finance, so highlight your capital throughout your business plan.
  • Conditions : Conditions refer to market conditions. In your market analysis, you should be able to prove that your business is well-positioned in relation to your target market and competitors.
  • Collateral : Depending on your loan, you may be asked to provide collateral , so you should provide information on the assets you own in your operational plan.

How Long Does It Take to Write a Business Plan?

The length of time it takes to write a business plan depends on your business, but you should take your time to ensure it is thorough and correct. A business plan has advantages beyond applying for a loan, providing a strategic focus for your business.

What Should You Avoid When Writing a Business Plan?

The most common mistake that business owners make when writing a business plan is to be unrealistic about their growth potential. Your lender is likely to spot overly optimistic growth projections, so try to keep it reasonable.

Should I Hire Someone to Write a Business Plan for My Business?

You can hire someone to write a business plan for your business, but it can often be better to write it yourself. You are likely to understand your business better than an external consultant.

Writing a business plan can benefit your business, whether you are applying for a loan or not. A good business plan can help you develop strategic priorities and stick to them. It describes how you are going to grow your business, which can be valuable to lenders, who will want to see that you are able to repay a loan that you are applying for.

U.S. Small Business Administration. “ Write Your Business Plan .”

U.S. Small Business Administration. “ Market Research and Competitive Analysis .”

U.S. Small Business Administration. “ Fund Your Business .”

Navy Federal Credit Union. “ The 5 Cs of Credit .”

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example of a good business loan proposal

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13+ Loan Proposal Examples [ Personal, Construction, Small Business ]

Loan Proposal Examples

Entrepreneurship is a challenging field, but it’s a lucrative venture. If you’re hoping to establish a startup and work your way from the ground up, you will need all the funding you can get. If you’re applying for a personal loan to start a small business , you need a loan proposal to help you. A financing proposal will comprise all your plans and purposes on why you intend to apply for a loan request. It contains your business objectives as well as a fact-based reason why you deserve your business’ loan request approval.

13+ Loan Proposal Examples

1. business loan proposal template.

business loan proposal template

  • Google Docs

Size: A4 & US

2. Restaurant Loan Proposal Example

restaurant loan proposal template

Size: A4, US

3. Loan Proposal for Startup Template

loan proposal for startup template

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Size: 45 KB

4. Small Business Loan Proposal Template

small business loan proposal template

Size: 54 KB

5. Business Loan Proposal

business loan proposal1

Size: 10 KB

6. Credit Proposal Example

credit proposal example

Size: 171 KB

7. Home Loan Proposal Sample

home loan proposal sample

Size: 40 KB

8. Bank Loan Sample Proposal

bank loan sample proposal

9. Contractor Loan Proposal

contractor loan proposal

Size: 240 KB

10. Sample Loan Proposal

sample loan proposal

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11. Land Loan Proposal

land loan proposal

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12. Student Loan Proposal

student loan proposal

13. Simple Loan Proposal

simple loan proposal

Size: 208 KB

14. Loan Fund Proposal

loan fund proposal

Size: 232 KB

What Is a Loan Proposal?

A business loan proposal is a required document when going through a loan application prepared by aspiring borrowers. It includes not only the details of their loan but also their business description where they intend to use the money. Lenders demand a loan proposal to see if the loan candidate can pay for the credit and fulfill the loan agreement , and if his or her purpose is reasonable enough for a loan release.

How to Write a Loan Proposal

Development needs funding, and sometimes, even when your business is doing so well, there’s not just enough for expansion or building a new branch or a manufacturing facility. That and some other valuable purposes are among the  viable reasons to take a business loan . The idea of a huge financial burden might be intimidating, but with the right management, they can result in great profits.

Before that happens, you need a good loan proposal to back you up. Here are some guidelines to help you:

1. Start with a Comprehensive Executive Summary

To introduce yourself and your purpose, start your proposal with a comprehensive executive summary . An executive summary employs the characteristic of a cover letter that contains you and your business’ introduction. This will help whoever will review your proposal to identify who you are easily and the nature of what you do. You can include in the summary a brief description of your business, whether or not you’re a veteran in the field or finding ways to build a new business . State the reason why you’re appealing for a loan and how it will help you achieve your objectives.

2. Provide a Business Profile

Loan requests are a big deal. Lenders and bankers need to know that the person coming to them for help is credible and trustworthy. A copy of your company profile will add significant value to the validity of your appeal. Your business profile should include a summary of your business activities and the products or services that you put out into the market. It should also provide a narrative of your target customers and the marketing strategies that you use. In many ways, your business plan contributes to the most reasons why you need loan approval.

3. State Your Loan Request

Clearly state how much you want to borrow and how you exactly plan to use the money. General statements such as “I want to raise my sales, and an added fund would help me” won’t make the cut. Be specific. How will you raise your sales through additional funding? Will you buy more equipment and increase your production? Are you building another factory because your demands are piling up? This should come in detail as the bank won’t be content with a mere statement. Provide documents showcasing your intentions and the cost it entails. Present your need by showcasing facts and a promising plan waiting to happen.

4. Introduce a Proof That You Can Pay

A business loan proposal constitutes a huge sum of money. Without any repayment assurance, your bank would probably give you a negative result. Show them how you plan to pay your loan according to your agreed timeline . Provide a copy of your income statement , projected cash flow , and budget sheet , and explain how you will customize your financial plan in order to repay the loan. A concrete plan will help you provide them with a perspective on how you will manage your debt.

FAQ’s

What are the elements of a loan proposal.

A loan proposal has numerous elements, but they are generally classified as loan description, business description, financial statements , and references.

What supporting documents does your loan proposal need?

A loan proposal needs the support of a business plan, profit and loss statement , cash flow statement, balance sheets, and financial projections.

What are viable collaterals for a personal loan?

Among the most common types of viable collaterals for a personal loan are real estate properties , vehicles, home equity, cash, savings account, and investments.

Fulfilling your business objectives requires you to overcome some of your life’s most challenging obstacles. This includes getting your loan proposal’s approval. It’s not easy, and there’s a lot of considerations that go into the planning and making of your proposal presentation. If you’re thinking about doing it to enhance your business operations , here’s your cue—do it! Start with a selection of our solid loan proposals. Make the most out of a great day and download now!

example of a good business loan proposal

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How to Write a Successful Business Plan for a Loan

Lisa Anthony

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Table of Contents

What does a loan business plan include?

What lenders look for in a business plan, business plan for loan examples, resources for writing a business plan.

A comprehensive and well-written business plan can be used to persuade lenders that your business is worth investing in and hopefully, improve your chances of getting approved for a small-business loan . Many lenders will ask that you include a business plan along with other documents as part of your loan application.

When writing a business plan for a loan, you’ll want to highlight your abilities, justify your need for capital and prove your ability to repay the debt. 

Here’s everything you need to know to get started.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

A successful business plan for a loan describes your financial goals and how you’ll achieve them. Although business plan components can vary from company to company, there are a few sections that are typically included in most plans.

These sections will help provide lenders with an overview of your business and explain why they should approve you for a loan.  

Executive summary

The executive summary is used to spark interest in your business. It may include high-level information about you, your products and services, your management team, employees, business location and financial details. Your mission statement can be added here as well.

To help build a lender’s confidence in your business, you can also include a concise overview of your growth plans in this section.

Company overview

The company overview is an area to describe the strengths of your business. If you didn’t explain what problems your business will solve in the executive summary, do it here. 

Highlight any experts on your team and what gives you a competitive advantage. You can also include specific details about your business such as when it was founded, your business entity type and history.

Products and services

Use this section to demonstrate the need for what you’re offering. Describe your products and services and explain how customers will benefit from having them. 

Detail any equipment or materials that you need to provide your goods and services — this may be particularly helpful if you’re looking for equipment or inventory financing . You’ll also want to disclose any patents or copyrights in this section.

Market analysis

Here you can demonstrate that you’ve done your homework and showcase your understanding of your industry, current outlook, trends, target market and competitors.

You can add details about your target market that include where you’ll find customers, ways you plan to market to them and how your products and services will be delivered to them.

» MORE: How to write a market analysis for a business plan

Marketing and sales plan

Your marketing and sales plan provides details on how you intend to attract your customers and build a client base. You can also explain the steps involved in the sale and delivery of your product or service.

At a high level, this section should identify your sales goals and how you plan to achieve them — showing a lender how you’re going to make money to repay potential debt.

Operational plan

The operational plan section covers the physical requirements of operating your business on a day-to-day basis. Depending on your type of business, this may include location, facility requirements, equipment, vehicles, inventory needs and supplies. Production goals, timelines, quality control and customer service details may also be included.

Management team

This section illustrates how your business will be organized. You can list the management team, owners, board of directors and consultants with details about their experience and the role they will play at your company. This is also a good place to include an organizational chart .

From this section, a lender should understand why you and your team are qualified to run a business and why they should feel confident lending you money — even if you’re a startup.

Funding request

In this section, you’ll explain the amount of money you’re requesting from the lender and why you need it. You’ll describe how the funds will be used and how you intend to repay the loan.

You may also discuss any funding requirements you anticipate over the next five years and your strategic financial plans for the future.

» Need help writing? Learn about the best business plan software .

Financial statements

When you’re writing a business plan for a loan, this is one of the most important sections. The goal is to use your financial statements to prove to a lender that your business is stable and will be able to repay any potential debt. 

In this section, you’ll want to include three to five years of income statements, cash flow statements and balance sheets. It can also be helpful to include an expense analysis, break-even analysis, capital expenditure budgets, projected income statements and projected cash flow statements. If you have collateral that you could put up to secure a loan, you should list it in this section as well.

If you’re a startup that doesn’t have much historical data to provide, you’ll want to include estimated costs, revenue and any other future projections you may have. Graphs and charts can be useful visual aids here.

In general, the more data you can use to show a lender your financial security, the better.

Finally, if necessary, supporting information and documents can be added in an appendix section. This may include credit histories, resumes, letters of reference, product pictures, licenses, permits, contracts and other legal documents.

Lenders will typically evaluate your loan application based on the five C’s — or characteristics — of credit : character, capacity, capital, conditions and collateral. Although your business plan won't contain everything a lender needs to complete its assessment, the document can highlight your strengths in each of these areas.

A lender will assess your character by reviewing your education, business experience and credit history. This assessment may also be extended to board members and your management team. Highlights of your strengths can be worked into the following sections of your business plan:

Executive summary.

Company overview.

Management team.

Capacity centers on your ability to repay the loan. Lenders will be looking at the revenue you plan to generate, your expenses, cash flow and your loan payment plan. This information can be included in the following sections:

Funding request.

Financial statements.

Capital is the amount of money you have invested in your business. Lenders can use it to judge your financial commitment to the business. You can use any of the following sections to highlight your financial commitment:

Operational plan.

Conditions refers to the purpose and market for your products and services. Lenders will be looking for information such as product demand, competition and industry trends. Information for this can be included in the following sections:

Market analysis.

Products and services.

Marketing and sales plan.

Collateral is an asset pledged to a lender to guarantee the repayment of a loan. This can be equipment, inventory, vehicles or something else of value. Use the following sections to include information on assets:

» MORE: How to get a business loan

Writing a business plan for a loan application can be intimidating, especially when you’re just getting started. It may be helpful to use a business plan template or refer to an existing sample as you’re going through the draft process.

Here are a few examples that you may find useful:

Business Plan Outline — Colorado Small Business Development Center

Business Plan Template — Iowa Small Business Development Center

Writing a Business Plan — Maine Small Business Development Center

Business Plan Workbook — Capital One

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U.S. Small Business Administration. The SBA offers a free self-paced course on writing a business plan. The course includes several videos, objectives for you to accomplish, as well as worksheets you can complete.

SCORE. SCORE, a nonprofit organization and resource partner of the SBA, offers free assistance that includes a step-by-step downloadable template to help startups create a business plan, and mentors who can review and refine your plan virtually or in person.

Small Business Development Centers. Similarly, your local SBDC can provide assistance with business planning and finding access to capital. These organizations also have virtual and in-person training courses, as well as opportunities to consult with business experts.

Business plan software. Although many business plan software platforms require a subscription, these tools can be useful if you want a templated approach that can break the process down for you step-by-step. Many of these services include a range of examples and templates, instruction videos and guides, and financial dashboards, among other features. You may also be able to use a free trial before committing to one of these software options.

A loan business plan outlines your business’s objectives, products or services, funding needs and finances. The goal of this document is to convince lenders that they should approve you for a business loan.

Not all lenders will require a business plan, but you’ll likely need one for bank and SBA loans. Even if it isn’t required, however, a lean business plan can be used to bolster your loan application.

Lenders ask for a business plan because they want to know that your business is and will continue to be financially stable. They want to know how you make money, spend money and plan to achieve your financial goals. All of this information allows them to assess whether you’ll be able to repay a loan and decide if they should approve your application.

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example of a good business loan proposal

How to Prepare a Small Business Loan Proposal

Written by Banks Editorial Team

Updated December 18, 2023​

4 min. read​

What Should a Business Loan Proposal Contain? 

General requirements for a loan proposal, format requirements of a loan proposal, what are the small business loan requirements, personal finances, business finances, how can you improve the chances of loan approval.

Businesses need financial resources to grow. To get the financing, you may need to prepare a loan proposal. The business loan type you may need may be different—from a line of credit to accounts receivable financing —they all require a loan proposal. Without a strong proposal, your loan applications will be declined. That’s why you, as a business owner, should understand how to ask for small business funding .

Before applying for a loan , you should decide on a type of loan. There are traditional term loans and business lines of credit, but there are also microloans and equipment financing . No matter the loan type, you will need a loan proposal that discusses why you need the funding and how you will repay the loan. 

If you have a current business plan, you already have most of the needed information. If not, schedule some time for collecting the documentation. You will need data that explains the following:

  • How much money you need .
  • What you are funding with the loan.
  • How you will repay the loan.
  • What you will do if you cannot repay the loan. 

Loan proposals need a clear statement as to why funding is necessary. If you don’t have a clear objective, it won’t be easy to get loan approval. Spend time thinking about these four crucial areas before writing your loan proposal. When you’re ready to begin putting your proposal together, be sure to follow the recommended format for your targeted lender.

If there is no lender-specific format, following the Small Business Administration (SBA) guidelines is the best approach since many lenders accept SBA loan applications.

  • Proposal Summary.  Provide a synopsis of the loan proposal in the form of an executive summary or cover letter. It should focus on you and your management team, your business experience, what your business does, and how you plan to use the money to grow your business . It should address the four general requirement areas as briefly as possible.
  • Business History.  Depending on the type and size of the loan, you may need to provide a more detailed business history. For most loans, the number of years you’ve been in business and any significant changes in financial health during that period should be enough.
  • Market Assessment.  This section should convince lenders that you understand your market, customers, and industry. The level of detail will depend on the requested amount. 
  • Management.  This section should list the owners and management team for the business, along with any education or experience in the industry or business.
  • Amount Requested.  The loan amount is more than just a number. It should be supported with data that shows how you arrived at the requested amount. If you’re asking for equipment, include quotes or pricing for each item. If you need money for prototyping, explain how the loan will help accomplish that. This is the section that describes why you need the loan.
  • Loan Repayment.  Detail the terms of the loan you are requesting. These terms should include the interest rate , length of the loan , and other conditions you would like to receive. Based on your proposed terms, demonstrate how you will meet a repayment schedule. Using sales forecasts and cash flow projections, you will need to discuss how you will repay the debt. 
  • Loan Default.  For most loans, some form of collateral is used as security against default. Collateral is some asset that can be sold to repay the loan should the business be unable to do so. These assets may include equipment, buildings, or investments.
  • Financial Statements.  The business’s balance sheets and income statements for the last three years (and possibly tax returns) will be needed to demonstrate financial viability. Personal financial statements or tax returns will be required of all owners with at least a 20% interest in the company.
  • Equity.  Lenders expect that a business owner will invest in their business. That equity can appear as retained earnings on financial statements or as a cash deposit from an owner. The typical benchmark is that debt does not exceed four times the equity in the business.
  • Forecasts.  You will need to provide sales and cash flow forecasts for at least one year. This section should also include plans to adjust operations should revenue not meet projections.

Depending on the type of loan, other documents may be needed. For example, if you operate a franchise , a copy of the signed agreement may be required. If a specialized business or operating license is required, be sure to have copies available.

For small business owners, personal and business financial health can impact small business loan eligibility . You will need to ensure that all parties with more than 20% ownership have their personal financial information available. 

Lenders will look at your personal credit score and credit and payment history as part of their risk assessment. They will look at your debt-to-income ratio to assess your financial health. If you have maxed out your available credit, lenders will be hesitant to grant loan approval because you have limited financial flexibility.

Lenders are focused on a business’s available credit and debt commitments. If a business has little debt, good credit, and a strong cash flow, the risk to the lender is less than a company with high debt, limited cash flow, and poor credit. Having debt is not a concern as long as it is reasonable, given the industry and economic climate.

If your annual revenue has grown over time, lenders are more likely to consider your loan application. However, the growth needs to be at or above your industry average. If revenue has plateaued or is below average, lenders may feel that the risk is too significant and deny the loan application.

Loan approval is not automatic. In fact, the majority of small business loan requests are denied. Two ways you can improve your chances of approval are:

  • Having a co-signer.  A co-signer is someone who agrees to repay the loan should your company default. The co-signer will need to have the financial resources to ensure repayment of the loan.
  • Offering collateral.  Collateral is required for a secured loan. It may not be required; however, providing collateral as part of the loan proposal can strengthen your chances of receiving loan approval.

Ensuring your personal finances are strong is another way to improve the odds of getting a loan approved. Take the time to look at your credit score and correct any errors before applying for a business loan.

To improve your approval odds, consider contacting an online lender like ROK Financial , which does not require a minimum credit score. They will also assign you a business lending advisor to help you review the different loan options, navigate the loan application, and process until funded. If you want to talk to one business advisor from the ROK’s team, fill out this simple contact form , and someone will contact you to discuss your case.

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How to Properly Write a Business Loan Request

Chloe Goodshore

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure .

Have to submit a business loan request letter as part of your loan application? Not sure how to get started?

We don’t blame you. These kinds of letters aren’t as common as they used to be. While online lenders don’t usually ask for small-business loan requests, some traditional banks and credit unions still do. And if you apply for an SBA business loan (a loan backed by the US Small Business Administration), you’ll need a small-business loan request as part of your loan application package.

No matter which lender you’re applying with, this guide will help you write a strong business loan request letter―and to get the business loan you need.

How to write a business loan request letter

  • Start with the easy stuff
  • Write a brief summary
  • Add information about your business
  • Explain your financing needs
  • Discuss your repayment plan
  • Close the letter

1. Start with the easy stuff

Writing a loan request can feel overwhelming. After all, it’s not an everyday part of being a small-business owner. What do you say when applying for a bank loan? How do you write a business proposal for your loan application? What’s your lender even looking for in a business loan request letter?

That’s why we suggest starting your request writing process with the easy bits: formatting.

You’ll want to begin your business loan request with some pretty standardized formatting that includes your contact information, the date, your lender’s contact information, a subject line, and a greeting.

Typically, you’ll want to format the beginning of your small-business loan request roughly like this:

First and last name

Business’s name

Business’s phone number

Business’s address (this one is optional)

Lender name (or loan agent’s name and title, if you have one)

Contact information for your lender or loan agent

Subject line

Obviously you can simply plug in the relevant information for most of this. Easy peasy, right?

You’ll really only have to come up with your own subject line and greeting. But don’t overthink it. Something like this will work just fine for your subject line:

  • Re: [Your business’s name] business loan request for [loan amount]

Likewise, keep your greeting simple. “Dear [lender]” or “Dear [loan agent]” will do quite nicely.

Got all that? Then you’re ready to get into the actual loan request.

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2. Write a brief summary

Before you dive into the meat of your loan request, you should give a brief summary of your letter. Just write a short paragraph that says why you’re writing and what you want.

So you’ll probably want to include the following details:

  • Business name
  • Business industry
  • Desired loan amount
  • What you’ll use the loan for

No need to get fancy with this. You’re trying to condense the most important information into one or two sentences.

For example, your summary might look something like this:

  • I’m writing to request a [loan amount] loan for my small business in the [industry name] industry, [business name]. With this loan, [business name] would [describe your intended business loan use].

As you can see, you don’t need much detail here. You’re just giving the reader a quick overview of what’s to come.

And now that you’ve given them that preview, it’s time to get more in depth.

Remember, your lender isn’t here to grade your writing. Try to use good spelling, grammar, and punctuation―but don’t stress about crafting beautiful sentences.

3. Add information about your business

Your next section should add more detail about your business. You’ll want to include information like this:

  • Business’s legal name (if different than name used)
  • Business’s legal structure (LLC, partnership, S corp, sole proprietorship, etc.)
  • Business’s purpose
  • Business’s age (or date it began operating)
  • Annual revenue
  • Annual profit (if applicable)
  • Number of employees

Now, keep in mind that you’re not trying to give your reader an encyclopedic history of your business. Instead, you’re trying to show that you have a well-established business―one that’s solid enough to deserve a business loan. So focus on relevant details that show your business’s maturity.

You can keep this section as short as a few sentences or as long as a few (brief) paragraphs. Just make sure you leave plenty of room for the next two sections.

4. Explain your financing needs

After discussing your business, it’s time to explain why you need a bank loan.

That means you’ll want to offer some details about how you plan to use your business financing. For example, you can talk about the employees you plan to hire, the building you want to expand, or whatever else you intend to do with your term loan .

Take note, though, that you also need to explain why your loan request makes sense. Because your lender doesn’t really care that you want a loan―it cares whether or not it makes sense to lend to you. You need to convince your lender that you have a good plan for your loan―one that will make it easy to repay the money you borrow.

Try to answer questions like these as you write this section:

  • Why should your lender want to approve your loan application?
  • What happens to your business if you get your small-business loan?
  • What kind of growth will your business loan allow for?

Dig into your business plan and projections to find some good stats. Explain how hiring those additional employees will increase your revenue by a certain percentage or dollar amount. Break down how opening that add-on to your restaurant will allow you to seat a number of additional customers, and how much revenue you expect that to bring in.

The more specific you can get, the better. Because again, you’re trying to convince your lender that you’re borrowing as part of a thoughtful business plan ―not just because you want some cash.

And take your time with this part. In most cases, this section and the next one will form the meat of your business loan request letter. 

As a rule, you should keep your business loan request letter to one page.

5. Discuss your repayment plan

By this point, your lender should understand what your business does and why a loan would help it grow. Now you need to prove to your lender that you can repay your small-business loan.

This doesn’t mean you have to show precise calculations breaking down your desired interest rate and monthly payment. (After all, your bank probably hasn’t even committed to a specific interest rate yet.)

Instead, talk about things like your business’s past finances, other existing debts, and any projections can you offer.

So if you have a profitable business, point that out, and discuss how that will free up cash flow to repay your loan. Offer summaries of profit-and-loss statements that show your business has been growing. Tell your lender how you’ll pay off that existing loan within a few months, so they don’t need to worry about it interfering with repayment of your new term loan.

Put simply, this is your chance to convince your lender of your creditworthiness. Especially if you have a slightly low credit score or some other concern, you want to use this section to show that you will absolutely repay your loan.

6. Close the letter

Finally, you can add a few finishing touches.

Usually you should close with a short paragraph or two that refers the reader to any attached documents (like financial statements) and asks them to review your loan application.

You may also want to include a sentence expressing willingness to answer any questions―or just saying you’re looking forward to hearing back.

Then end things with your signature, list any enclosed documents, and you’re done!

Well, sort of.

At this point, we strongly recommend you print off your business loan request letter and read it―out loud, if possible. This will help you catch any errors. Because no, your lender isn’t a writing teacher, but you still want to make a good impression.

Plus, if you make typos on something like your business name or desired loan amount, that inaccuracy could lead to confusion from your lender―slowing down your loan approval process.

Once you’ve proofread your loan request letter, you’re ready to submit it to your lender. With any luck, your thoughtful letter will help convince your lender to give you that loan you want.

Loan proposal letter template

So how do all those steps look when you put them together? Something like this:

            First and last name

            Business’s name

            Business’s phone number

            Business’s address (this one is optional)

            Date

            Lender name (or loan agent’s name and title, if you have one)

            Contact information for your lender or loan agent

            Subject line

            Greeting

This first paragraph should summarize the rest of your letter. Keep it to just a couple sentences.

The next one to three paragraphs add more detail about your business. Include facts about its age, revenue, profit, employees, and other relevant information.

Then explain why you need financing and how you’ll use it to grow your business. This section can be a little longer (but remember your whole letter  should fit on one page).

Next, talk about how your business will repay your loan. You may want to mention how financial documents show your business’s financial health, for example.

Finally, close with a short paragraph or two that list any enclosed documents and invite the lender to consider your loan application.

Printed name

List of enclosed financial documents

That’s not so hard, is it? With this basic business loan request letter template, you can easily write your own personalized business loan proposal.

The takeaway

So there you have it―that’s how to properly write a business loan request.

Get your formatting right, include a short summary, talk about your business, explain your loan needs, prove you can repay your loan, and close things off. (And don’t forget to proofread.)

We believe in you. You can write this thing.

And good luck getting your loan application approved!

Don’t just tell your lender you can repay your business loan―make sure you can with our business loan calculator .

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Proposable

Proposal Templates > Loan Proposal Template

Loan Proposal Template

If you are looking to secure a new loan, a loan proposal might be your best bet. We’ve taken the guesswork out of putting together impressive looking proposals with our free and fillable loan proposal template that can be customized to your needs in minutes. Edit, deliver, and track your proposal, then get approval with built-in eSignatures.    

Loan Proposal Template

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example of a good business loan proposal

Before you apply for a loan, you need a business plan or a business idea. A business proposal is a perfect way to present your idea to lenders or investors. A business proposal usually follows a business proposal outline. If you don ’ t know what a business proposal looks like, look for a short business proposal sample or a business proposal template online. You can also find a business profile format for bank loans in word.

A good proposal will stand out and catch the eye of the lender. Discuss your business proposal ideas with an advisor to craft the perfect business proposal letter. At proposable.com, we have a large variety of business proposals that are guaranteed to suit your business. The best part is that we’re always growing! We ’ re adding new templates daily so that you never miss out on any opportunity because you’re busy crafting a proposal.

  • Business Templates
  • Sample Proposals

FREE 11+ Sample Business Loan Proposal Templates in MS Word | Google Docs | Pages | PDF

sample business loan proposal templates

You write a business proposal if you want to start a business or improve something on your business that requires financial support from an investor. An investor can be an individual or organization that offers financial help in exchange for something they get in return. But they are not to be mistaken as a bank loan or any type of loan. For business loan, the right proposal to write is a business loan proposal . The purpose of this proposal may be similar to that of a business proposal but the arrangement for the whole transaction is different, especially when it comes to the payment record arrangement. For you to be familiar with loan proposals, here are some samples that will help you identify them.

Business Loan Proposal Samples

1. business loan proposal template, 2. small business loan proposal template, 3. sample business loan proposal for bank template, 4. complete business loan proposal, 5. bank loan request and proposal template, what is a business proposal for a loan, 6. proposal for microenterprise development and loans, 7. commercial business loan proposal template, 8. business loan request for proposal template, 9. business loan fund proposal template, why is business proposal good, 10. business loan application and proposal letter, 11. simple business loan proposal template, 12. business profile loan proposal application, what should be included in a loan proposal, how to propose a business loan, is there any lock in period for business loan, what is the interest rate for business loan.

business loan proposal template

  • Google Docs

small business loan proposal template

Size: 62 KB

The first thing that most businesses turn to when they need to get a loan, especially if it is for a really huge amount, is a bank loan. Banks offer different kinds of loan for varying amounts depending on the capability of the borrower to pay the loan and the requirements they can present upon application. A business loan proposal is one of these requirements, and banks use this as one of their basis for approving or denying your loan. Being a known business entity is one factor, but a well-written, feasible, and persuasive business proposal sample is actually what gets the deal done.

sample complete business loan proposal 1

Size: 10 KB

Why do we say that this business loan proposal template is complete? That is because it includes all of the necessary details that will complete a proposal. Since this sample template is also customizable, you can easily make the necessary changes to make a proposal that is applicable to your needs. There are fill-in-the-blanks and questions that will help you come up with a detailed proposal so you don’t have to worry about missing anything. It’s definitely a great professional business proposal template to use.

bank loan request and proposal sample 2

Size: 131 KB

Planning to get a bank loan for your business? Then you should learn how to write a bank loan request and proposal. Banks follow really strict guidelines when it comes to lending money to their borrowers. Having knowledge on how to come up with a presentable proposal would be to your advantage. This sample includes a writing guide followed by a sample brief proposal sample that you find useful.

A business proposal for a loan is a formal document that outlines the details of a company’s request for financial assistance from a lending institution. This comprehensive document serves as a roadmap, providing lenders with a clear understanding of the business, its financial health, and the purpose statement for which the loan is sought. Crafting an effective business proposal for a loan requires careful consideration and attention to detail.

Title and Introduction: The proposal should begin with a concise yet impactful title that reflects the purpose of the document. The introduction sets the tone, briefly introducing the business and stating the purpose of the loan request. It’s essential to grab the lender’s attention from the start.

Business Overview: Provide a detailed overview of the business, including its history, mission statement , and core values. This section gives the lender insight into the company’s identity and its commitment to its goals. Include information about the industry in which the business operates, highlighting key trends and opportunities.

Loan Request: Clearly state the amount of the loan being requested and the specific purpose for which the funds will be used. Whether it’s for working capital, expansion, equipment purchase, or other needs, the purpose should be articulated with clarity. Provide a breakdown of how the funds will be allocated.

Financial Statements: Include comprehensive financial statements, such as balance sheets , income statements, and cash flow statements. These documents should cover at least the past three years, offering a snapshot of the company’s financial performance. Lenders use this information to assess the business’s ability to repay the loan.

Business Plan: Present a detailed business plan that sample outlines the company’s strategy, market analysis, competitive landscape, and sales and marketing approach. A robust business plan demonstrates the business’s viability and management’s understanding of the market.

Collateral: If the loan requires collateral, specify the assets being offered as security. Collateral provides reassurance to the lender and mitigates their risk. Clearly describe the value and nature of the proposed collateral.

Repayment Plan: Outline a clear and realistic repayment plan, including the proposed terms, interest rates, and the frequency of payments. A well-thought-out repayment plan instills confidence in the lender regarding the borrower’s ability to meet financial obligations.

Risk Assessment: Acknowledge and address potential risks associated with the business or the loan itself. This demonstrates transparency and allows the lender to make an informed decision.

Conclusion: Summarize the key points of the proposal, reiterating the business’s strengths, the purpose of the loan, and the potential for mutual success. Express gratitude for the lender’s consideration and provide contact information for further discussions.

sample proposal for microenterprise development and loans 03

Size: 605 KB

A microenterprise is defined as very small scale business that consists of six employees or lesser. You can’t expect to earn a ton with this kind of business, not with the workforce that you have. Even if that is the case, you may still encounter financial difficulties in starting one. This sample proposal for microenterprise development and loans will be a helpful reference to use when writing a proposal for a microenterprise loan. It works just like a business investment proposal  on a small scale.

commercial business loan proposal sample

This commercial business loan proposal sample template will surely make it easier and more convenient for you to write an effective and persuasive business proposal of your own. The template has every detail that you need, which includes broker information, applicant transaction or information, property information, income information, a list of commercial tenant information, and yearly building expense information. For your commercial business loan needs, this proposal is sure to be a good choice.

sample business loan request for proposal template 01

Size: 226 KB

Even if your business loan proposal is well-written and persuasive, if it does not follow the standard requirements by the lending companies it will surely not be approved. How can you avoid this? There are request for proposal guidelines that these lending companies provide, just like the sample shown above. The sample template will give you an idea on what a request for proposal is like. It makes a good reference material.

business loan fund proposal sample

Size: 232 KB

A fund proposal will help you gather funds for a specific cause that your business is supporting. This four-page fund proposal sample will be useful as your guide or reference to help you come up with just the right proposal that will help you get your loan application accepted. You can get ideas on what you can add to our own proposal and how to make it more believable. Using this sample and other freelance writing proposals will help you improve your proposal writing style.

A business proposal is a key document in the world of commerce, playing a pivotal role in various aspects of business development and growth. Its significance lies in its ability to effectively communicate a company’s ideas, solutions, and value propositions to potential clients, partners, or investors. Here are several reasons why a business proposal is considered essential and advantageous:

  • Communication of Intent: A business proposal serves as a formal communication tool that articulates a company’s intention to collaborate, provide a service, or sell a product. It outlines the purpose, scope of work , and objectives of the proposed business engagement.
  • Clarity and Understanding: By presenting information in a structured manner, a business proposal ensures clarity and enhances the recipient’s understanding of the offering. It provides details about the company, its capabilities, and the specific benefits the proposal brings.
  • Professionalism: A well-crafted business proposal reflects professionalism and attention to detail. It demonstrates that the company takes the opportunity seriously and is committed to delivering quality work or products.
  • Showcasing Expertise: Through the proposal, a business can showcase its expertise and industry knowledge. This helps in building credibility and trust with potential clients or partners who are seeking competent and knowledgeable collaborators.
  • Solution-Oriented Approach: A business proposal is not just about highlighting products or services; it is about presenting solutions to the recipient’s needs or challenges. This solution-oriented approach positions the business as a problem solver.
  • Competitive Edge: In a competitive business environment, a compelling proposal can give a company a competitive edge. It allows the business to differentiate itself from competitors by emphasizing unique selling points, innovation, or added value.
  • Financial Transparency: For proposals involving financial transactions or partnerships, the business proposal provides a platform for financial transparency. It outlines costs, pricing structures, and the overall financial implications of the proposed engagement.
  • Alignment with Objectives: A business proposal ensures that all parties involved are on the same page regarding objectives, expectations, and deliverables. This alignment is crucial for successful collaboration and avoids misunderstandings.
  • Decision-Making Tool: Recipients of business proposals often use them as decision-making tools. A well-prepared proposal provides the necessary information for stakeholders to make informed decisions about whether to proceed with the proposed engagement.
  • Legal and Formal Documentation: In many business dealings, a proposal serves as a precursor to a formal agreement or contract. It outlines terms and conditions, providing a foundation for legal and contractual discussions.
  • Project Planning and Scope Definition: The proposal stage is an opportunity to define the scope of a project, including timelines, milestones, and deliverables. This initial planning is crucial for project success.
  • Feedback and Iteration: Submitting a proposal opens the door for sample feedback and iteration. Businesses can use feedback to refine their offerings, address concerns, and improve the overall quality of their proposals.

business loan application and proposal letter 1

Applying for a business loan? Check out this business loan application and proposal letter. With just two pages, this proposal is able to explain the reason why a business loan is required by the applicant. The sample is also written in letter form so you will see various paragraphs doing the explanation. You can also make use of proposal letter samples as your sample reference .

simple business loan proposal sample

Size: 95 KB

Simple things is where great things start. So don’t worry if your business loan proposal is simple. As long as it follows the required standards and is persuasive enough, then you are sure to get a big yes to your loan sample application . The sample provided is a simple one, but you know that it is reliable because it is from the South Carolina Bank and Trust. Just ask yourself why such a bank would use a faulty business loan proposal. This is no doubt a good sample.

small business loan application 07

If your business is not as small as a microenterprise, then the perfect business loan proposal that you should use is the sample shown above. This sample is sure to have everything you need to help you finance your small business. It includes a loan application checklist, a business profile, management profile, business debit schedule, personal financial statement , etc.

A comprehensive loan proposal should include essential elements such as the purpose of the loan, the requested amount, business details, financial information, repayment terms, and collateral details.

To propose a business loan, thoroughly outline your business plan , financial standing, and how the loan will be utilized. Provide supporting documents and demonstrate the ability to repay.

The lock-in period for a business loan depends on the terms and conditions set by the lender. It is essential to review and understand these terms before entering into an agreement.

The interest rate for a business loan varies depending on factors like creditworthiness, loan amount, and the lender’s policies. It’s crucial to explore options and negotiate for the best rate.

In conclusion, a well-crafted business loan proposal is essential for securing financial support. By addressing key aspects like purpose, repayment plans, and financial projections, it enhances credibility and increases the likelihood of loan approval.

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How Fast Should Your Company Really Grow?

  • Gary P. Pisano

example of a good business loan proposal

Growth—in revenues and profits—is the yardstick by which the competitive fitness and health of organizations is measured. Consistent profitable growth is thus a near universal goal for leaders—and an elusive one.

To achieve that goal, companies need a growth strategy that encompasses three related sets of decisions: how fast to grow, where to seek new sources of demand, and how to develop the financial, human, and organizational capabilities needed to grow. This article offers a framework for examining the critical interdependencies of those decisions in the context of a company’s overall business strategy, its capabilities and culture, and external market dynamics.

Why leaders should take a strategic perspective

Idea in Brief

The problem.

Sustained profitable growth is a nearly universal corporate goal, but it is an elusive one. Empirical research suggests that when inflation is taken into account, most companies barely grow at all.

While external factors play a role, most companies’ growth problems are self-inflicted: Too many firms approach growth in a highly reactive, opportunistic manner.

The Solution

To grow profitably over the long term, companies need a strategy that addresses three key decisions: how fast to grow (rate of growth); where to seek new sources of demand (direction of growth); and how to amass the resources needed to grow (method of growth).

Perhaps no issue attracts more senior leadership attention than growth does. And for good reason. Growth—in revenues and profits—is the yardstick by which we tend to measure the competitive fitness and health of companies and determine the quality and compensation of its management. Analysts, investors, and boards pepper CEOs about growth prospects to get insight into stock prices. Employees are attracted to faster-growing companies because they offer better opportunities for advancement, higher pay, and greater job security. Suppliers prefer faster-growing customers because working with them improves their own growth prospects. Given the choice, most companies and their stakeholders would choose faster growth over slower growth.

Five elements can move you beyond episodic success.

  • Gary P. Pisano is the Harry E. Figgie Jr. Professor of Business Administration at Harvard Business School and the author of Creative Construction: The DNA of Sustained Innovation (PublicAffairs, 2019).

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COMMENTS

  1. What Is a Business Loan Proposal?

    How much do you need? See Your Loan Options with Fundera by NerdWallet We'll start with a brief questionnaire to better understand the unique needs of your business. Once we uncover your...

  2. How to Write the Perfect Business Loan Proposal

    The mechanics of the business loan proposal are the numbers contained in cash flow reports, balance sheets, P&L statements, revenue projections, personal and business credit histories, tax filings, bank statements, and a list of other numbers we will cover in detail.

  3. How To Write A Successful Business Plan For A Loan

    1 OnDeck Learn More Via Ondeck's Website Loan amounts $2,000 to $250,000 Monthly fees Varies by loan term Minimum credit score of at least 660 FICO at the time of application 2 American Express...

  4. Top 10 Business Loan Proposal Templates with Samples and Examples

    Template 6: Loan Request Budget Allocation For Small Business Loan Proposal PPT PowerPoint Slides. Show your investors you mean business by presenting a well-thought-out budget plan using our PPT Slide. Make it rain with the details like a budget startup, investment, loan amount, and allocation of funds.

  5. How To Write A Business Loan Proposal

    Let's get to writing. We'll walk through each step but keep in mind that you'll want to write this proposal like an essay, not a list. Tell the story of your business while still meeting all of the requirements. 1. Introduce Your Business. 2. Explain Why You Need A Loan.

  6. What Is A Business Loan Proposal?

    Key Takeaways A business loan proposal is a streamlined pitch to a lender that explains what you need the loan for and how you would pay it back A good business loan proposal should...

  7. Free Business Loan Proposal Template

    View Template Business profile Explaining what your business does and the process of using and repaying the loan may sound a bit overwhelming to small business owners. That's why we created a business profile - a page dedicated to the history of your business, along with current activity and results.

  8. How to Present a Business Loan Proposal

    How much do you want? How will you be able to pay it back? The answers to the first question are shown in the business plan and financial spreadsheets you will be presenting.

  9. How to write a proposal for a business loan

    Preparing an effective, well-documented commercial loan proposal is the first step toward getting the money your business needs from a bank. Your business loan proposal will often be the first contact a banker has with your company. So you need to craft a document that presents your business in the best possible light. The goal is to persuade the banker that you're ready and able to make a ...

  10. How to Write a Business Plan for a Loan

    Common sections are: executive summary, company overview, products and services, market analysis, marketing and sales plan, operational plan, and management team. If you are applying for a loan ...

  11. Loan Proposal

    / Business / Proposals / 13+ Loan Proposal Examples [ Personal, Construction, Small Business ] Entrepreneurship is a challenging field, but it's a lucrative venture. If you're hoping to establish a startup and work your way from the ground up, you will need all the funding you can get.

  12. How to Write a Business Plan for a Loan

    Business plan for loan examples Resources for writing a business plan MORE LIKE THIS Small-Business Loans Small Business A comprehensive and well-written business plan can be...

  13. How to Prepare a Small Business Loan Proposal

    Format Requirements of a Loan Proposal. If there is no lender-specific format, following the Small Business Administration (SBA) guidelines is the best approach since many lenders accept SBA loan applications. Proposal Summary. Provide a synopsis of the loan proposal in the form of an executive summary or cover letter.

  14. How to Write a Business Plan for Funding

    Here are the core components of a successful business plan for funding. 1. An Executive Summary. The executive summary should cover the essential information about your business: what it does, who it serves, and what you're looking for from the people who read it.

  15. How to Prepare an Effective Loan Proposal

    Management Profile (s). Lenders want to know to whom they'll be lending money. Describe your experience, qualifications, credentials and skills. Include manager resume (s). Establish your credibility and track record as a business owner and as a good corporate citizen. Financial Statements. Include business and personal financial statements.

  16. How to Properly Write a Business Loan Request

    How do you write a business proposal for your loan application? What's your lender even looking for in a business loan request letter? That's why we suggest starting your request writing process with the easy bits: formatting.

  17. Free Bank Loan Proposal Template, Free 2024 Sample

    Include a brief description of who you are, your background and qualifications, the type of startup you want to create, and where the loan money will be used. And so forth. You can include a photo of yourself and links to your social media pages to personalize your proposal. Dear [Lender.FirstName] [Lender.LastName],

  18. Write your business plan

    Executive summary Briefly tell your reader what your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company's leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing.

  19. Loan Proposal Template

    Loan Proposal Template - [Free Sample] | Proposable Best proposal software ever! I've tried soooo many proposal softwares and I'll never try another one after Proposable. It's so easy to use and it looks good, which all the others don't. Taylor Woodruff Account Executive, Grow.com Smart, reliable, and constantly improving. Proposable just works.

  20. Appendix B: Sample Business Plan and Loan Proposal

    Purpose of Funds. The business plan and loan proposal projects a business loan of $130,000. The loan will be in two parts, the first of which is $30,000 for equipment, furnishings, and initial promotional efforts. That loan is to be amortized monthly for four years and collateralized by initial and hereinafter-acquired equipment and furnishings.

  21. How to Write a SBA Loan Business Plan

    A business plan is a crucial piece of any SBA loan application. It's what lenders will look at most closely when approving a loan, so it should be organized, well planned and persuasive. Set yourself up for success by learning how business plans impact loan approval and which critical elements to include.

  22. FREE 11+ Sample Business Loan Proposal Templates in MS Word

    Size: 232 KB. Download. A fund proposal will help you gather funds for a specific cause that your business is supporting. This four-page fund proposal sample will be useful as your guide or reference to help you come up with just the right proposal that will help you get your loan application accepted.

  23. How to Write a Business Proposal (+ Examples & FREE Templates)

    It can be general like this business proposal example: CREATE THIS PROPOSAL TEMPLATE Or it can be more specific, like this business proposal template which focuses on proposing a project for the Newton Center Rail: CREATE THIS PROPOSAL TEMPLATE Or this business proposal sample, which presents a plan for a social media strategy and campaign:

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