What is a loan proposal?
Loan proposal is an official business document used to request money from another individual or group. These designs are a lot like a standard business plan, but often have more descriptive information and fewer overall details. Although there are often several parts of a loan proposal, they usually divide into three areas. The narrative tells of business and its history, the description outlines the financial aspects of the application and the documentation section contains information that supports the first two sections. The complete document will contain a lot of information and make considerable efforts to get together. These documents should be tailored to a potential creditor, but a large amount of information can be easily copied.
These documents consist of three basic parts; The first is the narrative section. The narrative in the design of loans is used to describe history, owners, environment and business methodology. These sections are generally less formal than common business documents because they often contain iNormation about personal elections, goals and dreams for business. The second part of the narrative will discuss what the loan will bring business and the direction the debtor hopes to go in the future.
The second basic part of the loan design is a description. This part will divide the financial aspect of the loan. This will include information on the current financial status of the company, other confirmed investors and the amounts and rates of the required loan. This part is often the most formal part of the document because it deals directly with money.
The last part is for documentation. This part will include business and tax records, proof of sale and evidence of the income. In principle, it will support all the hard facts caused in the first two areas.
Although the loan proposal is made only of three parts, they will rarely be kept as three sections. In general, these documents are divided to provide more complete and richer with the creditorReading experience. The design will begin with several short sections that act as an introduction. They consist of a narrative cover letter, descriptive financial summary and photographs or demographic information for the placement of the company.
Most of the loan design will be followed by a similar formula. It begins with the first part of the narrative and then goes into financial information. After hard numbers are documents, usually tax information that supports previous numbers. Furthermore, the narrative continues to go and the future of business, followed by details of repayment and return and other support documentation.