Sample Business Loan Proposal Letter

Generally a loan proposal should include these elements.

Sample business loan proposal letter. You have to ensure that you will use a professional tone and a business appropriate language when making your own loan proposal. Commercial loan department johnson construction is a very successful company that is well established in the construction industry. A business loan proposal is essentially a sales pitch you share with your bank. You can use the executive summary from your business plan as a reference point in writing this part of the letter.

Include essential business information. It should include the amount of money you want to borrow and explain why you merit the loan how you expect to use the loan and how you plan to pay the bank back. The average amount of a business loan is about 371 000 with the highest about 250 000. Begin your proposal with a simple and direct cover letter or executive summary.

It should be sent by certified mail so the applicant has proof of the time and date the letter was sent and received. Your plan should contain detailed information about the management of your firm the company s finances and the reason for the loan to reassure the bank that you will be making enough money to cover the loan repayments. Remember the more detailed you are in writing your employee training manual business plan and loan proposal the more likely you are to get the loan or investment you re looking for. Start your bank loan request by briefly explaining what your business does.

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 the company succeed. Don t cut corners or skip steps. A small business loan request letter is a letter to a bank that supports your business loan application. 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.

If there are any enclosures such as a business plan. Here is a sample business loan request letter. A loan proposal is a formal business document. The business loan proposal is your chance to convey to the lender your passion for and knowledge of the business you own.

Considering that you would have to convince a bank for a loan in the first place it is no wonder that the process can be such a complicated one. While you might send a business proposal to another company as an invitation to engage in a business relationship loan proposals are more formal still.