Loan Proposal

The following questions are to be answered.

1. How much do you need?
2. What will you do with it?
3. When will you pay it back?
4. How will you pay it back?
5. What if something goes wrong?

Always remember that 90% of all businesses disappear. So bankers tend to be very cautious.

Rules

Capital: Don't look for 100% financing; you must have some equity in the business.

Collateral: What assets are available as a secondary source of repayment (just in case)

Capacity: You must understand the company's ability to absorb and repay debt.

Conditions: What are the general economic conditions and in what ways will they affect your industry and your company.