What financial paperwork will my credit adviser need to see?

Profit & loss, balance sheets, cash flows and a plan.

In order to be able to help your business, your credit adviser is going to need to see a range of information. Here we look at what financial and business paperwork you’ll need to take.

Profit & loss and balance sheet

Your credit adviser needs to understand the true financial state of your business. They need to know whether it’s been trading profitably. They need to know what your assets and liabilities are. In short, they need the same things your lender will need: profit & loss statements and balance sheets for the last three years.

Cash flow projections

Cash flow is the lifeblood of a business. Cash flow, or the absence of it, is possibly the reason you’re seeing the credit adviser. So you need to be able to show your credit adviser what your cash flow projections are for the next 12 months.

Reasons to be cheerful

There is no point painting an unrealistic picture of your business. That can only lead to trouble down the track. However, if there is genuine reason for optimism, you should share that with the credit adviser. Of course, hard orders are worth more than promises.

Your plan for the future

Where are you going to take the business? Do you have plans for new products? Growth into new markets? More staff? This is all key information for your credit adviser. If these plans are formally documented, it can help inspire confidence in your credit adviser and your lender.

What more help? Contact Bevon Sinnott by emailing [email protected] 

 An MFAA Approved Credit Adviser is not your average mortgage broker.