Asking for a Business Loan? Create a Quality RFP

You must design a compelling request for proposal (RFP) to maximize your borrowing effectiveness.  Invest time and money to produce a professional loan request that will represent you in front of the credit committee.

Your RFP should contain a cover letter with these borrowing objectives:

  1. Highlight whether you want fixed or floating rate debt
  2. Specify the desired loan term
  3. Ask for the right loan amount
  4. Highlight any ancillary terms that are important to your company such as recourse.

The RFP body should contain the following sections:

  • An executive summary of the project
  • key components of the business plan
  • Market and demographic data if applicable
  • and summary financial data for the borrower, sponsor and the collateral.

A pro forma return on investment (ROI) calculation is essential information for new business property.  Pictures tell part of the story so be sure to include photos of the loan collateral.

Your chances of securing a great business loan are much higher if you lead your search with a professionally designed request for loan proposal.

Advertisements

About Michael Shelton

Your Business Coach Facilitating Delegation and Work Group Engagement Michael Shelton has over twenty-five years of business and military accomplishments, including extensive experience with one of the largest, publicly traded real estate investment trusts (REIT). He is a qualified business coach with assignments in cross-functional work group management, strategic planning, unit leadership, joint venture acquisitions, executive education, mentoring, training and merger integration. Michael has accumulated best practices for building committed work groups from more than $4 billion of capital markets transactions and commercial property development. He served as a commissioned officer and helicopter pilot in the U.S. Army, and earned his MBA from The University of Arizona. Michael has served as a major conference panelist and is the author of Cash Flow Rich, Winning Ways to Evaluate and Finance Real Estate. Today, he helps business owners get more work group engagement as President and CEO of Shelton Business Services, LLC in Scottsdale, Arizona. Disclaimer: I don't offer investment, legal or tax advice. Talk to your broker, accountant or lawyer for investment, tax and legal help. I might own stock in the companies I mention on-line. My posts, tweets and other on-line activity are my personal thoughts and don't represent my employer or company.
This entry was posted in Uncategorized. Bookmark the permalink.