Writing
A Franchise Loan Proposal for a Tanning Salon Franchise - The Necessary Sections
If it were simple to attain a loan - everyone would have one.
There is quite a bit involved in the loan process. There are a number of forms
to fill out and background checks to conduct. There are a number of sections
required in creating your loan proposal document. There is a summary of the request,
which simply summarizes The Summary of Request section is similar to an executive
summary in a business plan. A person should have a good idea of your entire proposal
after reading the summary. It is best to write the Summary of Requests last in
order to include all the information necessary. Borrower's history is another
section that needs to be in your franchising loan proposal. This section will
contain a short description of the franchise you are purchasing as well as your
own business history. You should also mention how you will build on past success
to guide your future success. The Market Data section of the franchising
loan proposal should include an overview of industry trends, assessment of competitors,
market size and potential, advertising strategies and an industry trend overview.
The beauty of owning a franchise is that the franchise corporation should have
this information completed already. Your franchise company will provide you with
these facts and figures so you can then pass it along to the bank. Another
section in your franchise loan proposal should be a site analysis. This section
will contain information about the chosen location's parking situation, traffic
issues, lease agreements and any other useful information about your location.
Marketing and Promotional Strategy is a key
section to be included in your proposal. Advertising can make or break a business
so this section needs to be impeccable. You need to think about how you will promote
your franchise and drive customers to your store. Most franchises will require
some amount of local advertising so you will need to include that information
here. You will be working on promoting an already familiar brand since you are
purchasing a franchise, which will only help you. Financial Information
is another key section in your franchising loan proposal. The franchise you will
be purchasing should provide you with past financial statements dating back at
least two years, which you need to include here. You will also be required to
provide your personal income statements and tax returns so the bank can check
your credit history. A statement of projected cash flow is also an important component
to include in this section. If all of this seems foreign to you, visit your accountant
or hire an accountant to guide you through this section. The last section
should be Schedule and Exhibits, which is similar to an appendices section of
a business plan. These documents all prove that what you are saying is real and
you have the documents to prove it. You should include all signed documents from
your franchise, your resume, any marketing documents, facts or figures your franchise
provided you and any other document that you think might help you case or is important
for the bank to see. When in doubt, include the document in this section. Remember
that by preparing this proposal, it does not entitle you to a loan. This is just
a way to get your foot in the door. You need to really believe in what you are
doing, your abilities and the franchise concept you will be adopting.
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