Sample Business Loan Proposal Letter

The average amount of a business loan is about 371 000 with the highest about 250 000.

Sample business loan proposal letter. 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. Commercial loan department johnson construction is a very successful company that is well established in the construction industry. You have to ensure that you will use a professional tone and a business appropriate language when making your own loan proposal. 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.

It will be a big help if you are aware on how to present a business loan proposal as the content of the document can either help you get investors or the other way around. 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. Include essential business information. You can use the executive summary from your business plan as a reference point in writing this part of the letter.

Generally a loan proposal should include these elements. It should be sent by certified mail so the applicant has proof of the time and date the letter was sent and received. Don t cut corners or skip steps. Here is a sample business loan request letter.

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. A business loan proposal is essentially a sales pitch you share with your bank. If there are any enclosures such as a business plan. Start your bank loan request by briefly explaining what your business does.

Skipping even one small detail could make the difference between a yes or a no from the bank s loan committee. A small business loan request letter is a letter to a bank that supports your business loan application. Begin your proposal with a simple and direct cover letter or executive summary. Sample 1 bank loan request letter date huntington national bank 90 syndicated lane new albany ohio 43058 attn.

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. 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.