How To Write An Effective Business Loan Proposal And Get The Money That You Need?

Regardless of what type of company you own, there is a big chance that you will need funding at one point or another. When that moment comes, it is important to know how to write an effective business loan proposal that will get you all the money that you need and help your company grow. A professionally written proposal should not only ensure that you get the funds that you ask for but to so at an affordable rate.

We have compiled a list of important financial details that you must include in your business loan proposal in order to maximize your chances of securing the funds that your company needs.

Add updated business records to the proposal

If you are looking to secure funds for a company that has been around for more than a couple of months, it is important to show the lender where the business stands, financially. This means including both historical as well as recent financial documents and business records, along with predictions and projects that you want to undertake in the future. Here are some of the things that you should include:

  • All tax return documents – By including your tax returns the lender will see that you are in compliance with the HMRC. This will also show the income and expenditure of the business;
  • Balance sheets along with profit/loss reports – These must be up to date and written as clearly as possible. By including these, you will show the lender what the company is making and what it is spending;
  • A detailed list of business assets – Include a list of all tangible and intangible assets of your business, along with their projected values. This list is particularly important because it essentially informs the lender of assets that can be used as collateral;
  • Current credit details – This should include information on all current loans and credit functions. This section should also contain the repayment history for the loans;

Include your personal information and details

Lenders will also be interested in your personal track record in terms of credit functions. Include all relevant financial information, along with a repayment history for your loans. The lenders may use this section in order to get in touch with your individuals who provided personal guarantees for your loans so that they can verify if you are trustworthy or not.

Although some may not like the idea, this section should also include a personal budget that shows your living costs and personal credit score. This will be an indicator of how much money you may have to take our of the business in order to cover your expenses.  Lastly, you should also include your personal assets and liabilities.

Write a detailed business plan

Every business loan proposal must include a well-written informative business plan. This section should focus on detailing your plans for the company, along with your predictions for the future. Put an emphasis on how the money from the loan will help develop the business. Here are the main sections that your business plan should include:

  • The executive summary – Here you must include an overview of your company. Explain what the business does, what is its market and what are the qualities that make it stand out from the competitors;
  • The company description – This part must contain a more detailed description of the company’s activity. Include details about its history, its current operations and any projections that you have for the future;
  • Key financial information – This should be a summary of all the financial information that you’ve included in other sections, along with a detailed presentation of what you intend to do with the loan;
  • Marketing Plan/Production Plan – Include a presentation of how you intend to market your services and products and how you will fulfill your orders. This section must clearly show how you will utilize your funds in order to manufacture the products and deliver them to the customer;
  • Management information – Here you must add include details such as the qualifications and experiences of your current staff and how their attributes help ensure that your business is successful and will continue to grow;

Conclusion

The information included above will help you ensure that your business loan proposal will impress the lenders and convince them to give you the funds that you need in order to further develop your company. Please keep in mind that our suggestions should be used in order to enhance your proposal. These should not be treated as guidelines to help you create the proposal from scratch.

It is also important to mention that some of the details in the business plans may have to change depending on what your company does. If you offer physical products you will also have to include details regarding your production line and the raw cost of a single product.

This having been said, follow our instructions and you are sure to get whatever funds you need.

How To Streamline The Online Lending Process And Get The Money Even Faster?

Borrowing money online is one of the easiest ways to get a few extra hundred pounds in a short amount of time. The application and verification process is already considerably faster than that of most banks, mostly due to the fact that online money-lending platforms do not require you to go to meetings or submit physical documents.

This having been said, getting an online loan can still take a bit of time if you have never used one of these services before, or if you are in a hurry. Here is what you can do in order to streamline the entire process and ensure that you can get up to 5000 pounds in as little as 24 hours:

Get your personal and financial documents in order

You may not be required to physically submit any documents in order to get an online loan, however, you will still have to fill in forms or upload photos of various bills and statements. In most cases, people who do not regularly use these services are not aware of what information they must have at hand in order to create a client profile. Going through all the documents that you have at home can take up to a day, especially if they are not in order, and delay the whole process.

This makes it essential to have at least a few things either ordered and stored somewhere accessible or written down. Now, different companies may require different details, but there are some documents that you will always need:

  • Proof of identity – These include your driver’s license, passports (may only be used along with documents that specify for how long you will be in the country), and biometric residence permits;
  • Proof of address – Any official document that associates your name with your current address will be accepted, from your driver’s license to a tenancy agreement or a recent utility bill;
  • Proof of income – Documents that show the fact that you have a stable source of income. This can be a work contract, past payslips, or an accountant’s reference (that is signed off to confirm your income);

Some of these documents are not required on a daily basis, but they are always useful to have nearby if you ever need to use the services of an online service in order to get a few extra hundred pounds.

Keep electronic backups on your phone or computer

If you do not want to have to worry about finding all of these documents every time you need to borrow money, scan them or take photos of them and keep them safe. If you use a smartphone app in order to borrow money online, you should make a habit out of photographing your recent bank statements and payslips, and also keep a photo of your ID or driver’s license on your phone.

This having been said, make sure that you keep all of these photos and scans as safe as possible. As useful as it may be to have them on your phone or computer, they could also be used against you if they fall in the wrong hands. Store them on your phone and make sure that you have a strong encryption placed on the device, for security purposes, or upload them to a secure cloud service such as Google Drive.  

Look for the fastest service around

Don’t jump at the first money-lending service that you find online. Do a bit of research beforehand and look for the services that process loans the fastest. The best way to gather this information is to go to the service’s website and read their terms and conditions, and also read reviews and testimonials. If the platform also offers a mobile app, you may that the reviews on the app store are equally useful.

Once you find a service that you like, go to a website such as www.trustpilot.com and analyze the experiences of former users. This way you can make sure that all the personal information that you provide will be kept safe and that you will get the money as fast as the company claims.

Keep more than one app installed on your phone

Once you use an online money-lending service, keep the app on your smartphone. Chances are that if you will ever need to borrow money in the future, you will not be required to submit any more personal information.

If you want to keep your options open at all times, consider downloading several apps and creating user accounts. Once you fill in all the forms and send in photos of your personal identification documents, you shouldn’t be asked to do it again when you need to borrow money. The same goes for web-based applications. Create an account and the information will remain associated with your email address.

Follow these tips and you should be able to quickly apply for online loans without having to go through stacks of personal documents in order to find everything you need in order to submit your request.