Bankable Financing

Is your business “Bankable”? How do you get “bankable”? How do you compare to your Peer Group and the Key Operating Ratios that your bank will use to evaluate your business and determine the businesses borrowing capacity. Will your business pass the scrutiny and requirements of your bank to qualify for financing and what type of financing will be available to your business.

Bank underwriters tell us how distressing it is for them to receive financial statements that are clearly inaccurate. They will often come to the conclusion that if the business is not even capable of generating an accurate financial report, how can the business be trusted to manage the banks money in such a way as to assure repayment.

When they do receive believable financials they often receive them without any explanation as to the impact of seasonality, non recurring revenues or expenses, or inconsistencies over the three years of reports they are reviewing.

When CRS prepares your “financing package” in addition to the standard three years financials and tax returns for the owner and the business we add a narrative about the business, and the businesses activity over the past three years as reflected in various balance sheet, revenue, and expense items. We also include projections for the succeeding year or two of the business and how the funds will be used, and their impact on the key financial ratios and operation ratios of the business. We clearly demonstrate to the bank how the funds will be repaid, what the collateral is, the amount of capital invested in the business by owners (equity), and the conditions of the intended purpose of the loan.