Lending
Financial Statements for Bank Loans and SBA Applications
Underwriters are not looking for optimism. They are looking for a set of statements that is internally consistent, supported, and consistent with your tax returns and bank activity.
We prepare the financial package behind a loan application, and the ongoing reporting a lender expects once the facility is in place.
The problem
Most declines and repricings start with the financials
When statements do not reconcile to the tax return, when debt is misclassified, or when the balance sheet understates real assets, the underwriter has to price uncertainty. That shows up as a smaller facility, a higher rate, more collateral, or a decline.
The underlying business is frequently fine. The presentation of it is not.
Signs you may need this
- A lender or SBA application asked for statements you cannot produce quickly
- Your financial statements do not tie to your filed tax returns
- Debt, leases or owner loans are misclassified on the balance sheet
- Assets on the books are understated relative to reality
- You have covenant reporting obligations and no reporting process
- You were declined or repriced and never got a clear reason
What we do
How the work actually runs
01
Clean and reconcile the statements
Balance sheet and income statement corrected, reconciled, and tied to bank records and filed returns so the package is internally consistent.
02
Correct the balance sheet
Fixed assets, inventory, work in progress, accrued revenue, leases and related party balances stated properly rather than left at whatever the file happened to hold.
03
Build the lender schedules
Debt schedules, aging reports, fixed asset detail, personal and business cash flow summaries, and the reconciliations underwriters ask for.
04
Model debt service capacity
Debt service coverage and cash flow projections presented on the basis a lender will test, with the assumptions written down.
05
Support the application
We answer underwriting questions on the accounting, and set up the covenant and periodic reporting once the facility closes.
Deliverables
What you receive
- Reconciled financial statements for the periods requested
- Debt schedule and debt service coverage analysis
- Balance sheet support: fixed assets, inventory, WIP, receivables aging
- Reconciliation between financial statements and filed tax returns
- Cash flow projection with documented assumptions
- Ongoing covenant and lender reporting pack
Outcome
What changes
The lender receives a package that answers its questions on the first pass. Clean, supported statements have helped clients obtain facilities faster and on better terms, because the underwriter is not pricing avoidable uncertainty.
One contractor client's balance sheet was materially understated. After the accounting was corrected, the awarded contract came in at over $2 million against an expectation of roughly $700,000 of work.
Best suited to
- Businesses applying for SBA 7(a), 504, term or line-of-credit facilities
- Contractors needing statements for bonding or lender review
- Companies with existing covenant reporting requirements
- Owners refinancing or consolidating existing debt
FAQ
Frequently asked questions
Related services
Where clients usually go next
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Cash Flow Forecasting for Small Businesses
Cash flow forecasting for U.S. small businesses. See payroll, tax, debt, and project timing weeks ahead so cash decisions are planned, not reactive.
Audit readiness
Audit Preparation and Audit Readiness Services
Audit preparation for U.S. businesses: prepared-by-client schedules, reconciliations and support files so your external audit runs on time and without surprises.
Next step
Discuss Your Accounting
Tell us the facility you are pursuing and the deadline you are working to.