Develop a Pitch for a Business Loan

Obtaining a business loan requires the borrower to pitch their business and the reasons for the loan. A lender considers the information provided by the borrower along with other factors. This consideration determines whether the lender will make the loan and how that decision benefits the lender. In order to obtain the loan, the borrower should develop a solid pitch that will help the lender see the benefit of making the loan. 

Developing a Sales Pitch

This pitch communicates to the lender the purpose for the loan and provides a succinct benefit statement for the lender. The lender, as a business, needs to see how the loan improves their position and provides value to the lending institution. 

About the Sales Pitch

The sales pitch should be short and to the point. It should provide sufficient information for the lender to determine the business owner’s passion, desire to expand or grow their business and the way the loan proceeds will assist with that. Because the pitch focuses on the needs of the lender over those of the borrower, the pitch should include statements such as “this loan will help our business grow provide the bank/lender with additional revenue.” These types of statements allow the lender to look at the business as a partner and see the loan as an investment in its success and the future revenue for the bank.

Writing Down Sales Points

A business owner should write down key points and highlight how the business loan will benefit the lender. The key points should be emotional-based, rather than factual, because the lender will have already reviewed financial statements. Highlighting the emotional aspect of a loan can help the lender focus on the potential of a business.

Practicing the Sales Pitch

Practicing a sales pitch several times will help the business owner gain confidence and know what to say and when to say it. The business owner should practice the pitch to sound natural, the words should be the owner’s words and not come from a website or canned speech. The owner should think in terms of what the lender needs to hear to convince them that the loan is a good investment for the lender and will provide tremendous future value. Also, the owner should practice in front of the mirror to gauge their facial expressions.