About Lesson
Why A Loan Package
Having a comprehensive and well-developed loan package for your business is essential for obtaining financing. In fact, we believe without one, going to a bank is pointless and perhaps even damage your chances of being approved. To lenders, a plan not only provides information and reveals your evaluation of your venture’s feasibility but also reflects your management ability.
Having an analytical, objective business plan and loan package convinces lenders that you are cautious, conservative, and capable. One that is poorly researched, makes unsupported assumptions, or draws unfounded conclusions shows that you are inexperienced and – in their eyes – potentially reckless.
I once heard that Bank of America receives of 10,000 applications every single day on ONE of their business credit applications online. Lenders receive so many proposals that they cannot afford to spend very much time evaluation each one. You have only a few minutes to make a good impression, and your plan must be an effective sales tool. It’s essential that your loan package is as thorough and accurate as possible and that you are able to support all claims.