With several government financing programs working as a backstop, financial lending institutions in Canada are ready and willing to lend to small businesses. To position your business for the best chance of success in obtaining a loan, you need a well-conceived loan proposal. Lenders need to be confident your business is a sound investment with a solid long-term outlook.
To address their key concerns, your proposal should include some key documents for answering the following questions:
- How much money does your business need to borrow?
- How will the loan proceeds be used?
- How will the business repay the loan?
- What makes your business a reliable candidate for a loan?
- What will your business do if it can’t repay the loan?