SET THE CONTEXT
MARKET ANALYSIS AND BUSINESS POSITIONING
DEVELOP YOUR SALES FORECAST
DEVELOP YOUR OPERATIONAL AND COST PLAN
DEVELOP YOUR CASH FLOW PROJECTIONS
DETERMINE YOUR FINANCING STRATEGY
INTERPRETING THE INCOME STATEMENT
INTERPRETING THE BALANCE SHEET
INTERPRETING THE CASH FLOW STATEMENT
What Lenders Look for
Lenders typically ask the following questions:
- How much do you want?
- What’s it for?
- How will you generate profit to repay on time?
- Can they trust you?
- Do you have a good credit history?
- Do you manage your business well?
- What if you can’t repay on time?
- Is there sufficient collateral to repay the loan?
Relevant information which lenders usually require includes:
- Cash flow projection
- Income projection
- Balance sheet projection
- Sales forecast
- Cost plan
- Debt-to-equity ratio
- Other key ratios
- Market analysis
- Past records
- Scenario analysis
- Executive summary
- Concise, direct to the point
- Written last
- Introduce the business owner and the business
- Projected sales, profit and keys to success
- Peer review