If you want to grow your business, then it’s most likely that you already started considering applying for any of the business loans available out there. Preparing a well-organised, complete and convincing business proposal can be a little bit scary and stressful.  This folder of documents is, most likely, going to be your first contact with the bank. One thing is for sure: you don’t want to make any mistakes. You need to put your business in the best light possible.

We are here to help. Here’s how to create business loans proposals that no bank will ever refuse.

Organise your finances

Before hurrying into any loan, make sure your finances are in order. This step is easier than you might believe.

Calculate how much money you actually need and what are you going to use it for. Make sure you understand the types of business loans available to you, their terms and conditions, and what steps you need to take to apply for them. Make sure you take the time to carefully analyse all the options.

Business plan is essential

This is the part that might take you some time to complete. You need to know that every banker out there will pay a high level of attention to the following things:

  • Summary – Start with a brief overview of your company, the industry it activates in, what are the main competitors, and why your company is better. Remember to include here the reason you need any of the business loans and how you are going to use the financing.
  • Description of the company – Make sure you continue by inserting a detailed description of your company’s history and its main strategy. This is one of the main parts of the whole documentation that any banker will check.
  • Financial status – If the previous step was meant to help the financial representatives understand your business’s activity, this step will influence their final decision. This is where it is essential to emphasise your strengths.

Make sure you provide a complete documentation of your cash flow, balance sheets, tax refunds, income statements, and provable forecasts for the next couple of years. This information will help your banker understand what is your capacity to repay your business loans and the interests.

Writing style

Pay a high level of attention to your writing style. Make your documentation as easy to read and as user-friendly as possible. Use simple language and avoid technical terms and acronyms. Sell yourself! Focus on illustrating how you will succeed. Offer them multiple scenarios.

Consider hiring a professional copywriter and a graphic designer to make your business loan proposal stand out.

Plan B

If you are just starting out your company, your bank might ask you to guarantee any business loans you might take with collateral. Collateral can be defined as a good the bank can sell in case you cannot reimburse the loan; and this good may be: equipment, inventory, or even your own home.

  • Find a co-signer – If your financial status is a little bit shaky, then it is a good idea to find a co-signer with a clean financial history. This will guarantee the lenders that the loan is going to be repaid one way or another.
  • Put a great emphasis on your marketing plans – Now more than ever, before granting you any loans, your lender will carefully analyse your marketing approach. Make sure you recognise the risks (competitors, prices, other market-related risks) and that you have exit strategies that will help you deal with the issues that might arise in time. 
  • Managerial approach – Many lenders will pay a lot of attention to the borrower’s character and financial status. The lenders will, most likely, want to check the loaner’s track record and his/her management skills. If you demonstrate that you managed other previous businesses successfully, your loan is as guaranteed. 

Debt consolidation

Consolidate your loan proposal by adding supplementary documents. Consider adding to your application any documents that might boost your credibility:

  • Client testimonials
  • Media reports
  • Market studies


Nowadays, lenders are willing to give money to the businesses that can demonstrate that their cash flow is in order and that they have collateral to secure the credit.

It is interesting to observe that the lenders avoid giving money for transforming a concept, an idea into a business. They prefer supporting already established businesses with a clean financial record. Still, that doesn’t mean that the start-ups cannot get a loan. All you will need to do is prove that you have previously launched other successful businesses.

Applying for a loan might look easy, but it is not always as simple as it seems. This article covers the main steps that every business owner needs to take to make sure he/she will receive a positive answer to his/her proposal.

Visit Business Loans and find out more about your business loans options.

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