Mastering TOEIC Reading: Comprehensive Practice for Understanding Business Loan Application Forms

Incomplete Sentences (Part 1)

Let’s begin with 30 practice questions for the Incomplete Sentences section of the TOEIC Reading test, focusing on vocabulary and grammar related to business loan applications.

1. The bank requires a detailed _____ plan before considering any loan application.
   A. business
   B. busy
   C. businessman
   D. businesslike

2. Financial statements must be _____ by a certified public accountant before submission.
   A. audited
   B. audienced
   C. audio
   D. audible

3. The loan officer will _____ the applicant’s credit history thoroughly.
   A. review
   B. revise
   C. revive
   D. revolt

4. A strong cash flow projection is _____ to demonstrating the ability to repay the loan.
   A. crucial
   B. critical
   C. crucial
   D. cryptic

5. The collateral offered must be of sufficient value to _____ the loan amount.
   A. secure
   B. ensure
   C. insure
   D. assure

6. The interest rate on the loan will be _____ based on the applicant’s creditworthiness.
   A. determined
   B. detained
   C. detached
   D. detained

7. Small businesses often struggle to meet the _____ requirements set by traditional banks.
   A. stringent
   B. strident
   C. stringy
   D. strenuous

8. A comprehensive business plan should include market analysis and financial _____.
   A. projections
   B. projectors
   C. projects
   D. projectiles

9. The loan application form must be filled out _____ to avoid processing delays.
   A. accurately
   B. acutely
   C. actually
   D. actively

10. Many entrepreneurs seek _____ capital to fund their startup ventures.
    A. seed
    B. feed
    C. weed
    D. deed

11. The bank may require personal _____ from the business owners for certain types of loans.
    A. guarantees
    B. warranties
    C. promises
    D. assurances

12. A good credit score can significantly _____ the chances of loan approval.
    A. enhance
    B. enlarge
    C. enrage
    D. engage

13. The repayment terms of the loan are _____ in the contract agreement.
    A. stipulated
    B. stimulated
    C. stipend
    D. stifled

14. Applicants must provide evidence of their ability to _____ existing debts.
    A. service
    B. serve
    C. swerve
    D. survey

15. The loan officer will assess the business’s _____ to determine its ability to generate profit.
    A. viability
    B. visibility
    C. vitality
    D. vicinity

16. A detailed inventory list may be required as part of the loan _____ process.
    A. underwriting
    B. undertaking
    C. undermining
    D. underlying

17. The bank will consider the applicant’s _____ ratio when evaluating the loan request.
    A. debt-to-income
    B. profit-to-loss
    C. asset-to-liability
    D. risk-to-reward

18. Some lenders offer _____ loans specifically tailored for small businesses.
    A. microfinance
    B. macrofinance
    C. megafinance
    D. minifinance

19. The loan application must include a detailed _____ of how the funds will be used.
    A. breakdown
    B. breakthrough
    C. breakup
    D. breakout

20. Successful applicants will receive a loan _____ letter outlining the terms and conditions.
    A. approval
    B. approbation
    C. appropriation
    D. appreciation

21. The bank may require _____ financial statements for the past three years.
    A. audited
    B. augmented
    C. automated
    D. authenticated

22. A solid business plan should demonstrate the company’s _____ advantage in the market.
    A. competitive
    B. completion
    C. compliant
    D. compulsive

23. The loan officer will _____ the applicant’s industry experience and management skills.
    A. evaluate
    B. elevate
    C. elaborate
    D. eliminate

24. Applicants must provide a clear _____ of their business structure and ownership.
    A. outline
    B. outlay
    C. outlet
    D. outlaw

25. The interest rate on the loan may be fixed or _____ depending on the terms.
    A. variable
    B. varied
    C. variance
    D. various

26. A strong cash flow statement is essential to demonstrate the ability to _____ the loan.
    A. service
    B. severe
    C. sever
    D. serve

27. The bank will assess the _____ of the business before approving the loan application.
    A. creditworthiness
    B. credit score
    C. credit card
    D. credit limit

28. Applicants should be prepared to provide _____ documentation to support their loan request.
    A. extensive
    B. expensive
    C. expansive
    D. expressive

29. The loan agreement will specify the _____ schedule for repayment of the principal and interest.
    A. amortization
    B. ammunition
    C. ambition
    D. admission

30. Successful loan applicants must adhere to the _____ outlined in the loan agreement.
    A. covenants
    B. conveniences
    C. conventions
    D. conveyances

Text Completion (Part 2)

Now, let’s practice the Text Completion section with four passages related to business loan applications, each containing four blanks to fill.

Passage 1

Small business owners often find the process of applying for a loan to be (1). To increase their chances of approval, applicants should ensure their business plan is (2) and includes detailed financial projections. It’s also crucial to have a clear (3) for the loan funds and to demonstrate the ability to (4) the loan according to the agreed terms.

1. A. daunting B. exciting C. simple D. unnecessary
2. A. vague B. brief C. comprehensive D. colorful
3. A. disregard B. purpose C. aversion D. indifference
4. A. repay B. ignore C. extend D. forfeit

Passage 2

When evaluating a loan application, banks consider several factors. The applicant’s (5) history plays a significant role in the decision-making process. Lenders also assess the business’s (6), examining its current financial statements and future projections. The (7) offered as security for the loan must be of sufficient value. Finally, the bank will review the business owner’s (8) and industry experience.

5. A. credit B. criminal C. academic D. travel
6. A. location B. size C. color D. viability
7. A. collateral B. employees C. products D. services
8. A. age B. height C. background D. hobbies

Passage 3

Preparing a loan application package requires attention to detail. Applicants should gather all necessary (9) before beginning the process. This typically includes tax returns, financial statements, and a detailed (10) plan. It’s important to be (11) when filling out the application form, as errors can lead to delays or rejection. Many banks offer (12) sessions to help applicants understand the requirements and improve their chances of success.

9. A. equipment B. furniture C. documentation D. decoration
10. A. evacuation B. business C. diet D. exercise
11. A. careless B. thoughtful C. hasty D. meticulous
12. A. counseling B. exercise C. cooking D. cleaning

Passage 4

The terms and conditions of a business loan are crucial aspects that applicants must carefully consider. The (13) rate, whether fixed or variable, significantly impacts the total cost of borrowing. The loan’s (14) period determines the monthly payment amount and the overall interest paid. Some loans may include a (15) payment at the end of the term. It’s essential for borrowers to fully understand their (16) under the loan agreement before signing.

13. A. exchange B. interest C. discount D. markup
14. A. repayment B. vacation C. storage D. shipping
15. A. bonus B. penalty C. balloon D. discount
16. A. privileges B. exemptions C. obligations D. hobbies

Answer Key

Incomplete Sentences (Part 1)

1. A
2. A
3. A
4. B
5. A
6. A
7. A
8. A
9. A
10. A
11. A
12. A
13. A
14. A
15. A
16. A
17. A
18. A
19. A
20. A
21. A
22. A
23. A
24. A
25. A
26. A
27. A
28. A
29. A
30. A

Text Completion (Part 2)

Passage 1:

1. A
2. C
3. B
4. A

Passage 2:
5. A
6. D
7. A
8. C

Passage 3:
9. C
10. B
11. D
12. A

Passage 4:
13. B
14. A
15. C
16. C

This comprehensive practice set focuses on vocabulary and concepts related to business loan applications, helping test-takers familiarize themselves with the language and structure typically encountered in TOEIC Reading Part 1 and Part 2 questions. By working through these exercises, students can improve their understanding of business finance terminology and enhance their overall performance on the TOEIC Reading test.