When applying for a loan, you must provide the lender with a loan package. A loan package is the documentation and business plan given to a lender to review in order to determine whether to approve your request. It may sound simple enough to do, but it takes organization and a clean presentation to improve your chances of approval. Providing the documentation is half the battle. The other half is how well you present it. Whether you are requesting a business or personal loan, you must ensure that there are basic components included in your loan package before you submit it.

Business Plan

The first step to preparing a loan package is your business plan. The business plan outlines exactly what you want to do with the money from A to Z. The business plan includes your mission, what type of capital you will needing, how you plan on making the business profitable, repayment terms, long-term plans for the business, contingency plans, and how you will track your money. In addition, the business plan should outline the requested amount of the loan and how it will be used through each stage of the business. Feel free to include charts and graphs to provide a visual. What you are doing with a business plan is painting a realistic picture for the lender. You want to be very detailed in your needs. The lender wants to be able to read your business plan and understand the goal you are trying to achieve.


The next step in preparing a loan package is gathering all your documentation. Lenders will provide a checklist of documents that need to be submitted with your loan package. Check for inaccuracies on the statements. If you find inaccurate information, submit them for correction before providing the loan package to the lender. Review the checklist and make triplicate copies of the documents. Make sure that all statements being requested are the most current and are within the stated time line.


Once you have your business plan and documentation completed, you need to organize all your information into a cohesive product. This is where presentation is critical. Depending on the size of your information, you will want to get a binder that fits. The front of your binder should outline the name of your proposal as well as contact information for you. The contact information should include two phone numbers and your email and mailing addresses. On the inside, you will want to provide a cover letter and/or executive summary to outline what is being presented. Following the cover letter and/or executive summary, you want to provide a table of contents. Areas outlined in the table of contents should be tabbed and separated so the information is easy to find, should the lender need to access it immediately. Once you have compiled all your information, do one final check. It is important that you submit a complete package. If your package is incomplete, it will delay approval time or it will be denied altogether for insufficient information.

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