Prior to taking a credit choice, a loan provider want to start to see the after:
- Loss and profit declaration
- Balance sheet
- Cashflow declaration
These three papers will give you facts about your company’s economic performance for the past 12 months and the years before that. You ought to be ready to furnish your economic statements for the very last 2 yrs or maybe more.
A loan provider may also request you to offer economic projections. Whenever you prepare these, understand that you have to additionally mention the presumptions that you’re making. As an example, you should be ready to explain how you plan to achieve this if you say that your sales will increase in the next year.
Reports Receivable Aging and Accounts Payable Aging
Both of these reports are of specific interest towards the loan provider you manage your working capital because they provide information about the manner in which.