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For Bankers

• Bankers want assurance of orderly repayment. If you intend using this plan to present to lenders, include:

  • Amount of loan

  • How the funds will be used

  • What this will accomplish—how will it make the business stronger?

  • Requested repayment terms (number of years to repay). You will probably not have much negotiating room on interest rate but may be able to negotiate a longer repayment term, which will help cash flow.

  • Collateral offered, and a list of all existing liens against collateral

For Investors

• Investors have a different perspective. They are looking for dramatic growth, and they expect to share in the rewards:

  • Funds needed short-term

  • Funds needed in two to five years

  • How the company will use the funds, and what this will accomplish for growth.

  • Estimated return on investment

  • Exit strategy for investors (buyback, sale, or IPO)

  • Percent of ownership that you will give up to investors

  • Milestones or conditions that you will accept

  • Financial reporting to be provided

  • Involvement of investors on the board or in management