Packaging Your Loan Request


Let’s assume that you want to borrow money from a conventional lending institution.

The best time to become acquainted with your banker is before you need them. The best way to assure favorable lending terms when you need them is to develop a relationship with a banker. Periodic lunches, submitting financial statements to them for their files at times other than when you’re looking for help and keeping them up-to-date on you and your business in general will go a long way towards greasing the wheels when you ask for that loan.

But, alas, banks have loan committees and bank examiners to contend with so you’ll still have to complete a loan package to put them at ease.

Here’s a brief outline of what will be expected from you:


Nature of your business

History of your business

Amount and purpose of your loan

Repayment Terms

Equity share of borrower (equity/debt ration after loan)

Security or collateral


Education/work history

Credit references

Income tax statements

Personal debts

Financial statements


Business plan (outlining methods of operation and how loan will aid the firm in meeting corporate objectives.*

Life and casualty insurance

Lease agreements

Balance sheet and profit & loss statements (current and past 3 years)

Federal income tax statements (past 3 – 5 years)

Past cash flow statements (minimum 2 years)

Breakdown of inventory, fixtures, equipment, licenses, permits, goodwill, and other miscellaneous costs


Profit & loss projection (monthly, 3 years) and accompanying explanation

Cash flow projection (monthly, 3 years) and accompanying explanation

Balance sheet projection (yearly after loan for 3 years) and accompanying explanation

Assumptions made in projections should be ‘weighted’ by probability of occurrence


Executive Summary

Proposed business overview

Amount and purpose of investment capital

Table of Contents


Description of the Company

Corporate history

Proposed services or products

Potential market

Accounts receivable/payable

Article Continues Below

Marketing Analysis & Strategy

Industry profile

5 and 10-year market projections

Segmentation and penetration analysis

Market samplings

Major competitors

Sales activities

Personnel & Ownership

Organization charts

Job descriptions

Methods of compensation

Education/work history

Board of directors/stockholders

Funds Required & Their Uses

5-year total capital requirement

History of outside investments

Future value estimates

Expected liquidity

Plans for going public

Financial Data

Projected monthly profit & loss statements

Debt-to-equity ratios

Balance sheets

Cash flow

Past financial statements

Your business plan should include a convincing presentation of company strengths, as well as a candid acknowledgement of weaknesses. It should offer an effective market analysis and strategy.

More than thirty-five years ago, Jeffrey G. Allen, J.D., C.P.C. turned a decade of recruiting and human resources management into the legal specialty of placement law. Since 1975, Jeff has collected more placement fees, litigated more trade secrets cases, and assisted more placement practitioners than anyone else. From individuals to multinational corporations in every phase of staffing, his name is synonymous with competent legal representation. Jeff holds four certifications in placement and is the author of 24 popular books in the career field, including bestsellers How to Turn an Interview into a Job, The Complete Q&A Job Interview Book and the revolutionary Instant Interviews. As the world?s leading placement lawyer, Jeff?s experience includes: Thirty-five years of law practice specializing in representation of staffing businesses and practitioners; Author of ?The Allen Law?--the only placement information trade secrets law in the United States; Expert witness on employment and placement matters; Recruiter and staffing service office manager; Human resources manager for major employers; Certified Personnel Consultant, Certified Placement Counselor, Certified Employment Specialist and Certified Search Specialist designations; Cofounder of the national Certified Search Specialist program; Special Advisor to the American Employment Association; General Counsel to the California Association of Personnel Consultants (honorary lifetime membership conferred); Founder and Director of the National Placement Law Center; Recipient of the Staffing Industry Lifetime Achievement Award; Advisor to national, regional and state trade associations on legal, ethics and legislative matters; Author of The Placement Strategy Handbook, Placement Management, The National Placement Law Center Fee Collection Guide and The Best of Jeff Allen, published by Search Research Institute exclusively for the staffing industry; and Producer of the EMPLAW Audio Series on employment law matters. Email him at


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