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Applying for your first business loan is a bit of a daunting task because it is more involved than applying for a home loan. Business credit applications may look very similar to those associated with personal loans, but there is more than meets the eye: you are going to also want to be very well aware of your business credit profile, and you will need to submit a proposal for your business loan.
A business loan proposal consists of three parts. First, you are going to want to outline all the details of your business, starting with the history, the mission statement, and a detailed outline of the members and the business structure. This should give the lender a good understanding of the way the business works, what it provides, and why they should be lending to you in the first place.
The second part of the business proposal should give a run-down of the business’s market; it should discuss the product, the method of creation and distribution, a detailed description of the consumer base, and an explanation of the competition for that demand within the field or local area.
Finally, you want to provide a detailed analysis of the financial standings of the company, including business statements for the past few years, a disclosure of all liens that are currently held against the business, and an explanation of how the loan that you are applying for can be made up in the time that is being allowed.
Supplementing your business credit application with this is essential because it provides the lender with assurance that the loan that they are distributing will be paid back with little concern to the lending institution. As long as you are capable of providing that to the lender, you can rest assured that your business credit application will result in the financing you need.
