SECTION 4 – BUSINESS FINANCING
-By this point you will know whether your business will require financing. If you need to borrow money, having a Business Plan will help you greatly in arranging financing.
-Some lenders may only require a synopsis of your Business Plan, others will want to see the entire Business Plan.
-In addition to a Business Plan a lender will want to see some sort of loan application or proposal that states:
- How much money you wish to borrow.
- What you are going to buy with that money (include quotes).
- What you are going to use as collateral for the loan.
- The current value of assets being used as security.
- A statement of your net income.
-A lender will also want to know the answers to the following:
What are you and/or your partners or shareholders contributing to the business in cash?
How much money do you wish to borrow?
-If you do not have a loan requirement delete this section from the Business Plan.
-If you require a loan…
Write 1-2 paragraphs
-Complete the provided itemized list of what the money to be borrowed is to be used for.
-Give the current market value of these assets, not the price you paid for them
-If there is money owed on these assets, state the amount.
-Appendix your Loan Proposal.