A loan proposal is very similar to a business plan – or at least it should be. Among other similarities, both the business plan and the loan proposal tell you (and your banker) that you’ve figured out the answers to the five key borrowing questions:
- How much do you need?
- What will you do with it?
- When will you pay it back?
- How will you pay it back? (that is, where will the cash flow come from?)
- What if something goes wrong?
This is a sample of the introductory portions of the proposal. Each section, if applicable to your company, should be included in a complete business plan or loan proposal.