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Essential pieces of information
- Business Description: Usually completed on a Bank’s
application form. Be prepared to provide company details
such as address, telephone number, contact names, tax registration
numbers and other general information about your company.
- Balance Sheet: Financial statement showing company assets,
liabilities and equity. (start up companies provide projections
only)
- Income Statement. Also called a profit/loss statement:
Financial statement showing sales, expenses and profit over
a period of time. (start up companies provide projections
only)
- Cash Flow Projections: Financial statement outlining the
sources and uses of funds over a period of time.
- Statement from each owner outlining personal assets and
obligations (if the owners are providing a personal guarantee)
Additional Information
In general, a Bank will require more information as the loan
value increases.
- Business plan
- Projected balance sheet
- Projected income statement
- Personal tax returns from each owner
- Business tax return
- Credit history search on the owners and business (completed
by the Bank only with your permission)
- Month-by-month cash flow statement outlining expected
cash balances at the end of each month.
- Aged list of accounts receivable and payable. This report
lists suppliers and customers sorted by how long the invoice
is outstanding. Most lending institutions discount any customer
that has not paid you within 90 days.
- Appraisal on assets. This is an estimate of value. Appraisals
are generally required when financing real estate, purchasing
an existing business or used equipment.
- Environmental assessment. Required when purchasing real
estate. This is a survey to test for environmental contamination.
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