Executive Summary: Briefly summarize the key points of your proposal, giving the loan committee the most essential information while convincing them to read further. Remember this is the first, and sometimes the only, section a selection committee will read in an initial screening. â€“ 1 – 2 paragraphs
II. Investment Project: Use this section to describe the investment for which you are seeking funding, its costs, and timeframe. Specifically, you should: – 8 Pages
- Describe the investment project. Be sure to provide sufficient detail to give the loan committee a firm sense of the parameters of the activity, the need for it, and what financial metrics are relevant for determining success. In other words, what do you propose to do, where, what marketplace need will it fill, and how will you measure success?
- Specify the resources the project will require and where these resources will come from. In addition to noting the amount of the loan you are requesting, you should also consider human resources, facilities, government approvals, intellectual property, access to natural resources, and other resources that might be required to carry out the project.
- Timeframe . When will the project start, what is the anticipated economic life of the proposed expansion, and how will you decide if, when, or how to exit? Justify your choices with appropriate financial metrics.
III. Justification: In this section, you should analyze the impact of the investment proposal on your business.
In particular, you should cover: – 8 Pages
- Why is now a good time for this investment given the global context? Justify your response, citing specific external factors such as trade regulations, foreign currency considerations, or trends in foreign direct investment that might affect business financial decisions.
- Strategic fit. Use this section to discuss why the investment proposal makes sense for your company strategically. Specifically:
1.How does the investment align with the companyâ€™s organizational and financial priorities? Support your argument with evidence from company reports and financial statement analysis designed to persuade the lender that the investment is a good strategic fit for your company.
2. How does the project fit within the global microeconomic environment?
Support your response with evidence. For example, would the expansion tap unmet demand for the companyâ€™s key products or services or fill a new niche? How do you know?
3. How does the project build on the organizationâ€™s core competencies and comparative advantage? For example, does the company have a strategic advantage in regards to intellectual property, regional expertise, suppliers, or organizational structure?