What lenders want from your financials
Your lender needs to trace a repayment story from the books to the bank account. A profitable year alone does not show whether you can make the next payment. Ask which periods, statement format and debt-service definition the lender wants before your team assembles the package.
Assemble one package with one cutoff date
| What to include | What to explain |
|---|---|
| Income statement and balance sheet | Use the same cutoff and accounting basis. Reconcile cash to the bank and compare results with the prior period. Mark preliminary figures and explain the largest margin change. |
| Receivables, payables and inventory | Tie each schedule to the balance sheet. Flag disputed invoices, customer concentrations, overdue suppliers and stock unlikely to sell at its recorded value. |
| Debt schedule | List each outstanding balance, principal and interest due, maturities, any large final payment and pledged collateral. Separate the proposed borrowing from existing obligations. |
| Forecast and use of funds | Show what the growth capital buys, which working capital gap it covers, and when receipts arrive. Mark assumptions separately from actual results. |
Explain debt capacity in cash terms
For each payment period, compare cash available for debt service with scheduled principal and interest on existing and proposed debt. Ask the lender how it defines available cash and which adjustments it accepts. An annual total can look comfortable even when a seasonal low leaves a payment due before customers pay.
Run a second case: the largest expected receipt is late and a machine needs maintenance. Identify the first payment at risk, who will call the lender, and the date for acting. Compare a shorter working capital line with a longer term for equipment rather than asking one facility to solve both needs.
Write the cover note last
State the amount, use of funds, repayment source and expected dates. Point to the schedule behind each claim. If a reconciliation is open, name its owner and completion date. Send sensitive records through the lender’s secure channel; keep them off public contact forms. Apex advises on reporting and financing fit. Apex does not lend or guarantee financing; the lender makes the credit decision.