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How to save money by spending wisely
Why is it that the older and richer people become, the more conservative they are with their money? Have you ever done or know someone who has made an investment that promised a 10% interest or profit per month? Everyone wants to make above average...
Invest in the stock market for the RIGHT reason, using the RIGHT choices
You have permission to this article either electronically or in print as long as the author bylines are included, with a live link, and the article is not changed in any way (typos excluded). Please provide a courtesy e-mail to...
Leverage
Leverage by Alvah Parker Cassy was an employee of a nonprofit who had been at her job 5 years. She came to me because she felt that the organization she was working for didn’t value her and was upset because others had been promoted but she had...
The Landlording Follies
You are the landlord of a small apartment building that you are offering for sale. You find a buyer and a sale is arranged.
The tenants learn of the sale and ask if they will be forced to move. How do you answer?
You explain that it...
Trading the T4
There is an old expression you may have heard - to 'gild the lilly'. Basically, this means that if something is working fine, don't attempt to 'fix it', or 'improve it'. Chances are you will end up doing more harm than good. Nowhere is this more...
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How To Apply For a Business Loan
Worried about how to apply for a business loan? Although it may seem like a daunting task at first, it can be made less so by careful preparation. When applying for a business loan, you must prepare a written loan proposal. Make your best presentation in the initial business loan proposal and application; you may not get a second opportunity.
Always begin your proposal with a covering letter. Clearly and briefly explain who you are, your business background, nature of your business, the amount and purpose of your loan request, your requested terms of repayment, how the funds will benefit your business, and how you will repay the business loan. Keep this cover page simple and direct.
When writing your proposal, don't assume the reader is familiar with your industry or your individual business. Always include industry-specific details so your reader can understand how your particular business is run and what industry trends affect it.
Provide a written description of your business, including the following information:
Type of organization
Date of information
Location
Product or service
Brief history
Proposed Future Operation
Competition
Customers
Suppliers
Management Experience:
Resumes of each owner and key management members.
Loan Repayment:
Provide a brief written statement indicating how the loan will be repaid, including repayment sources and time requirements. Cash-flow schedules, budgets, and other appropriate information should support this statement.
Existing Business:
Provide financial statements for at least the last three years, plus a current dated
statement (no older than 90 days) including balance sheets, profit & loss statements, and a reconciliation of net worth. Aging of accounts payable and accounts receivables should be included.
Proposed Business:
Provide a pro-forma balance sheet reflecting sources and uses of both equity and borrowed funds.
Projections:
Provide a projection of future operations for at least one year or until positive cash flow can be shown. Include earnings, expenses, and reasoning for these estimates. The projections should be in profit & loss format. Explain assumptions used if different from trend or industry standards and support your projected figures with clear, documented explanations.
Collateral:
Provide a list assets to be held as collateral. Few financial institutions will provide non-collateral based business loans. All business loans should have at least two identifiable sources of repayment. The first source is ordinarily cash flow generated from profitable operations of the business. The second source is usually collateral pledged to secure the business loan.
Depending on your particular circumstance you may need to provide one or more of the following documents:
Lease, Franchise Agreement, Purchase Agreement, Letters of Intent, Articles of Incorporation, Plans, Copies of Licenses, Letters of Reference, Contracts or Partnership Agreement.
You may freely reprint this article provided the author's biography remains intact:
About the Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.
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