Applying for a Business Loan: Writing an Essay to Make Your Application Stronger

>> Бизнес >> 12.03.2019

Business loans are a common thing amongst business people. Whether you’re just looking for ways to launch your startup, or you’re looking for ways to improve your existing business, a loan is sometimes a necessity. This is why so many business people decide to apply for a loan in order to get funds for their business projects.

When applying for a loan, you’ll have to submit a ton of documentation: business records such as balance sheets, profit reports, tax returns, business plan etc. These are all standard loan application requirements. However, if you want to make a stronger impression you can take a step further and write an essay to make your application memorable.

Here’s what a loan application essay should be about and how you can write it.

1. What to Write

Let’s first discuss and cover the content of your business essay. Here’s what we feel like you should cover in your essay, in order to state your case and prove you deserve the investor’s or the bank’s trust.
  • What is the loan for?
The first part of your essay needs to be about your business idea. Even though you’ll cover it in great detail in your separate business plan, it’s important that your essay summarizes the whole idea and makes it concise yet understandable.

Sum up your business idea and reduce it to no more than a couple of paragraphs. Show why you’re passionate about the idea and what you envision you’ll achieve in the upcoming period.

Write about:
  • the boldness, uniqueness, and originality of the idea
  • the passion you have for doing more in business
  • the reasons why you believe it will be a success
It’s essential that you present the idea in a way which shows how much you believe in it and how ready you are to work hard for making it happen.
  • Why do you need that amount of money?
In your essay, you need to be able to justify the amount of money you’re applying for.

This means you have to show:
  • how you’ll spend the money
  • how did you come up with that exact amount
  • which methods did you use to create the financial plan
This section of your essay will show how professional and reliable you are. It will also give insight into your way of thinking your level of experience when it comes to designing business and financial plans.
  • How will you pay it back?
The final section of your essay needs to be about your plan for paying the money back.

It’s a sort of a promise you make to those you’re asking the loan from, showing them you have a detailed plan about giving them the money back.

In this section, you need to write about:
  • the estimated amount of time you’ll need to pay it back
  • your prediction about how much you’ll earn with the money invested
  • your plan B in case things don’t go exactly how you expected them to go
Show them what you’re made of and give them a reason to trust you completely. If you write this section properly, you’ll seal the deal and get the loan sooner than you’ve expected.

2. How to Write

Now it’s time to discuss the technical details of your essay. There are several aspects of essay writing you need to be aware of.
  • Accuracy
A serious, professional business person needs to show that level of professionalism in everything he does, including essay writing.

This implies your essay needs to be:
  • grammar mistakes free
  • spelling mistakes free
This requires a certain level of proofreading on your account. You can try doing it yourself, or proofread with the help of writing services such as Get Academic Help or tools like Grammarly.

Whatever you do, make sure your essay is 100% accurate and thoroughly proofread.
  • Vocabulary
Another majorly important aspect of your essay is the vocabulary. Pay special attention to the words you choose and remember you need to keep things professional.

Here’s what to pay attention to:
  • use formal vocabulary
  • don’t use slang and conversational style
  • don’t use contractions
  • include business terminology
Make your essay a true testimony of your skills, knowledge, experience, and integrity.

Final Thoughts

Applying for a business loan is a huge step for anyone who wants to do greater things in business. Although this process might be a bit stressful, you still need to walk the extra mile and do everything that’s in your power to have it approved.

Therefore, use the advice given above and make your application even stronger with an essay to back you up.