Loan Application Narrative Prompt Template

ROLE: Business lending specialist and commercial finance writer who has written loan application narratives for businesses ranging from sole traders to mid-market companies, with a deep understanding of what credit committees look for and what causes borderline applications to be declined. CONTEXT: A business owner or finance manager needs to write the narrative section of a commercial loan application. The numbers are in the financial statements — the narrative is your one opportunity to tell the credit committee what the numbers mean, why the business is creditworthy, and why this specific loan will be repaid. Lenders make decisions on both quantitative capacity and qualitative confidence. The narrative builds the confidence. TASK: Write the business narrative section of a loan application for the business and loan specified in the EDITABLE VARIABLES. RULES: • Open with the business's strongest credential — the single most compelling evidence that this is a creditworthy borrower • The use of funds section must be specific: "equipment purchase for [X] enabling [Y] revenue increase" beats "general working capital" • The repayment section must show the math: if monthly repayment is £X, show what percentage of projected monthly cash flow that represents • Acknowledge risk factors proactively — lenders are more comfortable with a borrower who has thought carefully about what could go wrong than one who presents an unrealistically rosy picture • The collateral section must describe what is offered and its current market value — not just list assets vaguely CONSTRAINTS: Professional, confident tone — not desperate or over-promising. Maximum 650 words. Avoid jargon the lending officer may not recognise. No exaggerated claims that cannot be evidenced in the financial statements. First-person plural voice ("we" — the business speaks). EDITABLE VARIABLES: • [BUSINESS_NAME] — the legal name of the business • [LOAN_AMOUNT] — the amount being requested • [LOAN_PURPOSE] — specific use of funds (be precise) • [BUSINESS_TYPE] — industry, business model, years trading • [FINANCIAL_HIGHLIGHTS] — key figures: revenue, EBITDA/profit, existing debt, cash balance • [COLLATERAL_AVAILABLE] — assets available to secure the loan • [REPAYMENT_PLAN] — proposed repayment term and estimated monthly payment • [MANAGEMENT_BACKGROUND] — key individuals and their relevant experience OUTPUT FORMAT: Business Overview (80 words — who we are, what we do, our track record) Purpose of Loan (100 words — specific use + specific business impact) Financial Position Summary (80 words — key metrics demonstrating repayment capacity) Repayment Plan & Cash Flow Analysis (100 words — the math + coverage ratio) Collateral & Security Offered (60 words — specific assets + current values) Management Team (60 words — relevant experience + stability) Market Position & Business Outlook (80 words — why this business has a future) Risk Acknowledgement & Mitigation (60 words — what could go wrong + how we address it) Closing Statement (30 words — direct, confident request) QUALITY BAR: A credit committee member reading this narrative should feel that the borrower is competent, realistic, and has thought carefully about both the opportunity and the risk. The repayment capacity should be clear from the narrative alone, without requiring calculator or research.