Writing a Business Proposal for Funding

: If you are applying for a loan to have an available funding for your new venture or existing business, one significant thing to keep in mind is to develop an effective business proposal for funding. This is important because the financial institution will study your proposal, so providing them with the important information is great thing to do for the loan to be approved right away.

Read on to determine the right way of writing an effective business proposal for funding.

Contents of the Proposal

The proposal must include all the information that the loan provider needs to know like information about the company, its history, funding needed as well as the complete explanation on how the fund will be used and how to repay it. You also need to include comprehensive information about the facilities of the company such as the company goals, employees, management, sales strategies, competition, markets, production capabilities, products, services, technology, equipment and facilities. The financial projections for the last three years may also be needed as well as the present tax returns and financial statement of the company. These are important because the financial institution will use the data for them to approve or disapprove the loan.

Importance of the Business Plan

  • For a certain business looking for funding, most investors and lenders require carefully planned proposal for funding, which is typically a condensed or modified version of the current business plan of the company.
  • For existing or new company, whether it needs funding or not, an existing financial plan will surely help on keeping the venture on track. One common reason why some businesses fail is because their supervisors didn’t make or follow a business plan.

Products or Services Offered

This is important part of your proposal because this is the portion wherein you can provide the information, which is needed by the funding institution. You can also include the inventories like the stocks or items that needed to be purchased as well as the cost or the expected production, prices of selling. The sales forecast for the next 3 years may still be needed too.

Keep it Simple

When writing a proposal, it is very essential to keep it simple only, do not use words that are not easy to comprehend, just try to use words that are easy to grasp. Do not put jackets or fancy covers. Make sure to attach cover letter for every proposal you send and first class postage must be used for prompt and safe delivery. Typically, it only takes from 2 to 3 weeks before you can receive an answer via mail. If they don’t send any reply, it is alright to call them and inquire regarding the status of requests.


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