Start from reviewed books
A financing package should not be the first time the company reconciles cash, receivables, payables, debt, and equity. Use the same closed financial statements management relies on internally.
If adjustments are needed for the lender, show them as a bridge rather than changing historical books solely for presentation.
Prepare the supporting schedules
Lenders can ask for current and historical statements, tax returns, bank statements, receivables and payables aging, debt schedules, ownership information, cash forecasts, and details of major customers or contracts.
Name each file by period and keep a request index so revised versions do not get mixed.
Explain the cash story
Profitability is only one part of repayment capacity. Be ready to explain seasonality, working capital, customer concentration, capital spending, existing debt service, and any recent one-time events.
A short cash-flow narrative can be more useful than sending another spreadsheet.
Model the new payment before accepting the debt
Add proposed principal and interest to the forecast under base and downside cases. Review minimum cash and covenant terms, not just headline interest rate.
Questions buyers usually ask
What financial documents do business lenders commonly request?
Requests vary, but common items include financial statements, tax returns, bank statements, receivables and payables schedules, debt detail, ownership information, and cash-flow projections.
Should a company change its books to match a lender presentation?
Historical accounting should remain consistent. If a lender uses adjusted measures, present a transparent bridge rather than rewriting the underlying books.
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