What AI Can Be Used for On Business Loan Applications 

AI systems like ChatGPT, Perplexity, and Claude (also known as LLMs or Large Language Models) can be used to help find and fix errors on your business loan application, reword sections so they’re clearer if you get stuck with phrasing, and help with the business plan portion including forecasts and charts.   

 This technology can be a time-saver when it has accurate data and you give it specific instructions. But it’s important to consider what you’re asking for and the specifics of your prompts. 

 AI should not be used for researching market conditions, accurate market rates, and other details that are time-sensitive or need current information, unless you upload the data to the system. This is because AI relies on their latest content gathering and the data sets on which they are trained to give you answers. Further, AI is designed to give you the answers you want to hear based on your prompts versus being able to fully fact check and be accurate. But don’t let that deter you from using AI for some pieces. 

 Here’s some of the things you can use AI like ChatGPT, Perplexity, and Claude for, and a few items you want to avoid using it for unless you upload the data and can ensure it only uses your information. 

Cleaning up, Simplifying, and Rewriting Content 

If you write a section like your business plan that goes with the application, but you can’t get the wording right, AI can help. Have the LLM take the content and ideas you put into writing and revise them. You can have it rewrite headers or even entire sections. 

Here are some prompts you may want to try rewriting the executive summary that goes at the beginning. 

• “Please keep the content under 500 words.” 

• “The audience is a lender and I’m applying for a business loan. The goal is for the lender to get an overview of my company so that they trust my creditworthiness and will approve the loan based on forecasts, industry stability, and my company’s finances.” 

• “Do not go overboard with adjectives or over-the-top wording.”   

• “The tone needs to be professional and written in proper American English.” 

• “I’d like for you to call out the following as they are important differentiators for my business and why we’re a good company to lend to: 

• • <Call out 1> 

• • <Call out 2> 

• • <Call out 3>” 

 If it is for a section header instead of a section, focus the prompt on that. 

• “I can’t get the wording right for section headers 1 and 2. Please rewrite the section headers and keep them between 5 and 8 words. I’ll upload them together as sections 1 and sections 2.” 

• “Now enter ‘section 1’ and use the labels ‘header 1’ and ‘content 1.’ Do the same for the second section.”  

• This helps the AI system know what the section is about and it can follow the instructions easily. By having the content from the section, it can create a better header for it. 

In addition to the executive summary, AI can make recommendations to help improve your business plan. 

Making Recommendations for Your Business Plan 

Once you have your entire business plan for the loan created, upload it to the AI tool you prefer and ask it a few questions. 

Can you tell me what the purpose of this business plan is? 

If the response from the AI device does not come back with a clear understanding that it’s a business plan for a business loan, you probably need to modify it.   

A business plan for a business loan should be about securing financing and why your company is a low-risk borrower. Ask the AI system how your plan can be modified and which sections could be clearer to make it specific for a business loan application. If the recommendations make sense, make the changes. 

Do you have any recommendations to make my business plan better?  Please share the reasons for your recommendations. 

This question with a follow-up statement will let it analyze the business plan and make recommendations. It does not mean the chat system is correct, but it can point out some potential missed opportunities.   

 You can also add details to the prompt like: 

• “Are there any sections I should shorten or add more details too? If you recommend me adding more, what should these additions be and why?” 

• “Would you recommend I expand on any of the talking points?” 

• “Do you see any opportunities where I should add extra examples or where a visual may be helpful? Please share the reasons why.” 

By adding additional prompts, you’re letting the AI tool know what you expect as an outcome and how it can give you a good analysis. In addition to more text, AI can help with visuals including organizational charts, graphs, and flow charts. 

Creating Visuals from Data You Upload 

An LLM system can create visuals to make it easy for the lender or investors to see where you stand and how the market changes over time. These include:  

• Organizational charts for team members 

• Projections and forecasts like line graphs 

• Market share charts 

When prompting an LLM, upload a spreadsheet or document with the data and make sure you specify: 

• The type of chart or graph you’re looking for (or ask it for a recommendation). 

• What the columns and rows are. 

• The time frame and goal of the visual.  

The LLM will populate the image for you. You can also ask it to embed your logo on the image if you upload it along with the data points.

In addition to these graphs, you can upload the names, titles, and roles of your leadership team and ask the AI system to create an organizational chart that shows who manages what from the top level down. This is important for the lender to see because they will want to know who is responsible for their investment.   

 Equally as important as the people managing the investments are the financial forecasts to show how the company will be able to pay the business loan back plus interest. 

Financial Forecasts and Projections 

If you’re not good at calculations or don’t trust your own math, don’t worry. ChatGPT, Perplexity, Claude, and other AI assistants can help.   

 You’ll need the: 

• Formulas or equations. 

• Correct data points to enter. 

 If you are looking for your Debt-to-Income Ratio (DTI), your input could be: 

• “Please calculate my debt-to-income ratio by using the following formula (Total Monthly Debt Payments / Gross Monthly Income) x 100 = DTI Percentage.” 

• “All of the needed information is in the attached spreadsheet where the rows are either monthly debts or monthly income.   

• Column A is the name of the expense or income source 

• Column B is a monthly debt 

• Column C is the monthly income” 

The spreadsheet you upload can look like the example below. For the sheet to work in this example, you would need to calculate your monthly income beforehand, which is your monthly revenue minus the cost of goods sold. 

There’s no shortage of ways that you can use AI like ChatGPT or Claude to help with a business loan application, but there are some things you should not have AI do. 

What Not to Use AI for When Applying for a Business Loan 

AI can create charts, analyze data you upload, and rewrite content you want to fine-tune. But there are things you’ll want to avoid asking it to do when it comes to your business loan application. 

Do Not Ask It to Research Market Conditions 

LLMs like ChatGPT do not always have the most accurate data. They only have the data points from the last time they crawled the internet, those they were initially trained on, and those that you personally uploaded to the same conversation. 

If you want it to create a market forecast, always upload the data and any industry insights. After uploading the data points, specify what the output should be. For example:  

• A market forecast if everything remains stable in the market and my company continues its current growth rate 

• A market forecast for when I have the extra funding and will increase our output by XY% leading to growth of AB% 

• A market forecast if the economy shifts upwards by XY% and another if it shifts downwards by AB% 

• A market forecast if two new competitors enter and take XY% of the market share 

 Certain LLMs can look for information on the internet, but you will likely need a paid account. If you want to take the risk in letting an LLM do the research, specify the pages and URLs they should use and tell them not to use any other sources. Include the specific URLs and specific tables, charts, paragraphs, or sections they should trust. 

Bonus-tip: Add an extra prompt that says, “Remove anything you found or included from sites not included in my prompt or directly on the pages I entered.” This may help keep the output more accurate. 

Include Selling Points and Competitive Advantages 

LLMs can fine-tune the wording you want to use, but they should not come up with selling points and competitive advantages for your business on their own. You know your industry and your company. You know what makes your company different. If what the LLM says is not factual and the lender sees this, it may damage your credibility, which is an important factor when applying for a business loan.   

AI can be used to save you time and fine-tune business loan applications, but LLMs are only as good as the prompts and data you give them. Think of ways you can better explain or ask for what you need, and then fine-tune the specifics of the prompt so that it gives you the best and most factual output possible to help increase your chances of getting approved for the business loan. 

National Funding does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal and accounting advisors.