How to write a business proposal for a bank loan.

Learn how to increase your chances of securing a bank loan with these business proposal tips.

If you want a bank loan to start a new business or expand your existing one, you’ll need a thorough business proposal (also known as a loan proposal). It shows the bank (or lender) that you’ve got a plan that’s likely to succeed.

But loan proposals can also be tedious and complicated to draft. Use the following tips to learn how to write a business proposal for a bank loan and get a head start on success.

Outline how you’ll pay the bank back.

Every bank loan proposal should include some standard details like how much you need to borrow and how you’ll use the loan to advance your business.

More importantly, your business proposal should outline how you plan to pay the bank back. A few things you can write out to accomplish this include:

• Three-to-five-year sales forecasts
• Cash flow projections
• Expense estimates

The more detail you include, the better. But don’t crunch a bunch of numbers on the very first page — make sure your proposal is clearly outlined and all information is grouped logically.

Demonstrate that you have a backup repayment plan.

Part of your business proposal’s job is to convince the bank that you can pay them back, whether you meet your sales projections or not. To demonstrate this, show proof of collateral (or something that secures the loan) in case things don’t go as planned after you invest in assets like new real estate, equipment, or inventory for your business.

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