There is good news and bad news for the small business owner looking for a loan. The good news is that the freeze on lending has seemed to ease up and loans are being offered to the small business owner again. The bad news is that the days of a half-baked plan and a lot of heart are long gone. If you aren’t coming in with a very well thought out pitch then you might as well pitch to a wall. You’ll get the same response.
Try to put yourself on the side of the lender. They want to give their money to a good business person with the right idea. You have to show them that you fit that criteria. This means that you have to start with a business plan that makes sense for you and your business. This includes a marketing strategy and estimates for profit. You have to convince them that you can market this plan and get the money back for the loan in the promised time. Perhaps you have a great prepaid Visa card but you may need more than that to get your business off the ground.
First, research your business. If you are going to write a business proposal, you have to do it correctly. Don’t assume they have never seen a business proposal. Assume they have seen a ton of them and that you have the right kind of proposal. Make it great and don’t settle for anything less. Look online and find one to model yours after.
Your business loan is vital to the business. Make sure you present yourself in the most professional way and you’ll be excited by the results.