Businesses run on a plan and money. Even a perfect business plan needs a significant inflow of money to be operationalized. Thus, a business loan proposal acquires importance that can never be overemphasized.


You'll need to know how to write a business plan for a loan if you want to start, expand, or acquire your own set of wares. Without a business loan proposal, you run the risk of being rejected, a possibility that you must never even entertain.


Why write a business loan proposal? (and why do you need a business loan proposal template?) Banks want to ensure your business idea is viable. They examine all aspects, including financial statements, sales strategies, and your overall financial plan.


Your financial projections are critical — a good business loan proposal will include revenue and profits for several years (if available). It will also forecast sales and profits for the next three-five years. Lenders also want to know the nature of your business, the products you offer, the competitive landscape you see on the horizon, and your key personnel. This information (and more) is used to assess your company's chances of success, allowing you to secure funding.


While a loan business plan should be clear and understandable to loan officers, writing a loan business plan also benefits you as the owner. A well-executed business loan plan serves as a road map for your company. You may use past financials and forecasts as blueprints to determine whether you are on track for success.


How to Write a Business Loan Proposal that gets Approved?


It’s before key decision-makers in financial institutions that a business loan proposal template takes center stage. Follow these steps, download the templates, and you are all set to get the funding.


1. Cover Page and Table of Contents

Your business loan proposal is a professional document, and it should look the part. The name of your company and contact information should appear on the cover page. If you have a logo, put it on the cover.


A table of contents and page numbers in the business plan for a loan application will help lenders, and you will find specific sections in a jiffy. If you deliver your plan digitally rather than in print, make sure your table of contents is clickable and directs readers to appropriate sections.


Cover letter for business loan proposal template


Cover Letter for Business Loan Proposal Template


Bank loan proposal table of content template


Table of Contents for Business Loan Proposal Template


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2. Executive Summary

Executive summaries are frequently on the first two pages of business documents,  so busy and knowledgeable executives can access the main points of a longer document. Putting Important information upfront is a golden rule you can break only at your own cost. Lenders are not supposed to waste time in finding anything.


On one single page, summarise your entire business plan. Describe your company, product, and mission. Include your main competitors and why your product will outperform them. Discuss the economic climate.


Tip: Executive summary should not contain a lot of financial information. If you have a particularly relevant or eye-catching financial result, you can include it.


Executive summary for Business Loan Proposal Template


Executive Summary for Business Loan Proposal Template


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3. Company Description

Company description is at the forefront of your brand and should include a mission statement, company principles, strategic partners, and corporate structure. A concise company descriptions work best.


Company profile for business loan proposal template


Company Description for Business Loan Proposal Template


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4. Market Analysis

After explaining what your company does and who are the key decision makers, you should provide a competitive analysis of your market. To be clear, the market analysis is not a complete marketing strategy. That will happen later. The market analysis focuses on the market's characteristics rather than a detailed plan for how you'll capture it. Determine the existing gaps that your company will fill. Market analysis in a business plan should include the following items:


  • An overview of the industry and its prospects
  • Any sector and niche differentiation
  • Data on your intended market
  • The marketing strategy of the company and how it will help your company stand out


Market analysis should also include information about the impact of the external business environment on your company. Include information indicating your knowledge of the regulation and past compliance with it. For example, if the industry is regulated (if your business is already up and running). Will you need any raw materials? If so, how do you ensure you'll have them at a price that fits your budget? Are there any risks associated with changing price points?


What about your rivals? How do they set themselves apart? What is their pricing policy?


While information about your competitors should be included in your market analysis, the real focus should be on your target customers. Where are they currently shopping? Why? What are their ages? What are their convictions? What is their current median income? If there is more than one type of customer, you should include information about both customer segments. Demonstrating mastery over your ideal customer gives investors confidence in your ability to succeed.


This section indicates if your company is conducting ongoing market research or R&D for competitive new products and services. Do you plan to conduct customer interviews as part of your research? How do you ensure the credibility of your research?


Market research has to be based on credible sources. For example, readers should understand the source of your information about your competitors. 


Citing the source is essential.


Tip: Many business owners hire third-party firms to conduct an analysis. If you have also used this service, please cite their findings. If your data comes from published research or a survey, cite it as well.


Market Analysis PowerPoint Presentation Slides


Market Analysis for Business Loan Proposal Template


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5. Organization and Management

The section on organization and management should detail your company's management structure. Many business plans include an organizational chart, a description of the structure, and salary projections.


Each management position, the person in the position, their responsibilities, and their qualifications should be included. If you have a Board of Directors, list their basic information on a separate page, along with any relevant experience showcasing your business's strength and relevance.


The business description section includes information about the firm's principals, such as owners and co-owners. A separate organization and management section is not required if your company is small and, for now, has only the principals running the show.


Management for small business loan proposal PPT Template


Management for Business Loan Proposal Template


6. Service or Product

Now is the time to detail your company's product or service. What exactly do you sell, and who are your targeted customers? What is your business model? What needs do you meet for your customer base? The entire product line is listed in business plans, and the planned or current pricing structure is also included.


The service or product section should also include the estimated lifecycle of your product/service and any completed, ongoing, or planned research and development. 


Naturally, the contents of this section will differ significantly depending on the nature of your business. It should also include a description of applicable trademarks, patents, or other intellectual property rights.


Business Product PPT Presentation


Product for Business Loan Proposal Template


7. Marketing and Sales

Three critical pieces of information are included in the marketing and sales section:


  • How will your customers learn about your products?
  • What are your sales channels and methods going to be?
  • What is your expansion strategy?


If you want to ensure that your customers learn about your products or services through informational channels such as industry meetings, explain how you intend to do so. Be specific if you intend to advertise or launch a public relations campaign. 


Key Questions To Be Included In Your PR Strategy


Will you be using social media? Which are they, and why? Are these efforts intended to target specific demographics or customer types? Which are they, and why? Will sales be achieved through a targeted sales team? How will management contact relevant prospective customers or stores? Will you have a web presence?


Outline your growth strategy if you have one. This section discusses expansions to other geographic areas or different types of potential customers.


Marketing and distribution for business loan proposal PPT Template


Marketing for Business Loan Proposal Template


8. Financial Analysis

Lenders rely heavily on the financial analysis section.  The financial analysis must include projections for the next three-five years. You will find that the longer the horizon, the vaguer the forecast. One solution to this conundrum is to prepare a business plan with three-year forecasts but has a five-year forecast ready in case the investors require it.


Tip: If you already have a business, include results for the last three-five years (or for as long as the business has been in operation, if less).


The following items must be included in any financial projections section that you design:


  • Profit and loss statements
  • Statements of cash flow
  • Budgets for capital expenditures
  • Financial statements


Profit and loss statements, sales forecasts, and financial metrics relevant to your industry may also be included. Lenders may request information in even more detail, such as the cost of sales or cost per product (or service).


You must provide projections for each month, quarter, and year. Potential investors want to see both short and long-term financials. Why? Because failing to meet monthly and quarterly projections can be dangerous. For example, they can fail if they fall behind in sales or profit.


On the other hand, if sales exceed expectations, the company may struggle to keep up with production and other efforts. Lenders always want a clear picture of what will happen to mitigate such kinds of risks.


Financial Analysis PPT Presentation Slides


Financial Analysis for Business Loan Proposal Template


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9. Funding Request

It's now time to submit your funding request! You must state why you require business financing, the amount you request (both current and prospective for the next five years), and how you intend to use the funds.


Tip: Describe how the funding will help your company's overall success. Will it allow for strategic research and development? Provide funds for the acquisition of a smaller competitor. Create a window for media purchases and other forms of marketing.


Here's one approach to structuring your funding request:


  • Your current funding requirements.
  • Any additional funding needs over the next five years.
  • How do you intend to spend the money, if you get it?
  • Any long-term financial plans.


Funding Request PPT Presentation Slides


Funding Request for Business Loan Proposal Template


10. Appendix

Appendix materials that are appropriate include:


  • Principal’s Resume
  • Returns on Taxes
  • Real estate documents that are relevant
  • Documents outlining your company's legal structure Processing flowchart
  • Buyers' letters of intent to purchase
  • Marketing and advertising materials
  • Relevant training certificates
  • Sales projections
  • Other financial projections
  • Personnel strategy
  • Statement of Profit and Loss
  • Balance sheet


FAQs on Business Loan Proposal Templates


How do you start a business proposal letter?

Start with a business heading for formal proposal letters that include your contact information and prospects. Then, introduce yourself briefly before stating the purpose of your proposal, including the problem, solution, and critical benefits. Finish with a solid call to action and a thorough signature you wish to leave behind in the minds of your target audience, typically the top brass in a financial institution.


What should be included in a loan proposal?


  • Financial forecasts.
  • The loan amount.
  • The Loan's Purpose
  • Marketing Strategy
  • Loan Repayment Schedule
  • Collateral Inventory


At this stage, it will pay well to pay close attention to financial forecasts and loan repayment schedules. Confident businesses should be able to get their business loan repayment right. This can happen only if your financial forecasts do turn out to be true. 


Why is a business proposal important?

Writing a business proposal will assist you in making critical decisions about cash flow, marketing, and personnel. Having clearly defined goals and objectives will also allow you to monitor the performance of the business and make adjustments as you progress. Remember, financial institutions’ major needs and expenses track your financial health. Make it easy for them to do so.


How to convince a bank to give me a business loan?

For this, please find the five major tips that will go a long way in creating a convincing business loan proposal. 


  1. First, establish a genuine relationship. It is challenging for business owners to approach someone and ask for help.
  2. Know Your Numbers.
  3. Explain how you arrived at your forecasts.
  4. Demonstrate how they will get their money back and on what schedule. Building credibility is important. Only make promises you are committed to and will not break at any cost. 
  5. You must personally guarantee the loan.


Finally, Get The Job Done With a Business Loan Proposal Template


It can be challenging to navigate the business loan process on your own. Many current and aspiring business owners rely on our predesigned Business Loan Proposal Templates to get the job done.


Cometh the hour, cometh the man (our templates).


Download the free Business Loan Proposal Templates PDF.