Often, as a commercial lender, I have companies inquire as to how they can make their organization credit worthy. Many times lenders struggle getting financing approved due to the lack of some key required information. I would like to take this opportunity to go over some basic information that may help your company secure financing. Also note, much of the information I request is also very useful information for yourselves and the management of your company.
1. Updated Information
The most important step is keep up to date financial information. Most lending institutions require at least annual financial statements. This will include the minimum of an Income/Expense Report and a Balance Sheet. This reporting provides a snap shot of your business year to date and needs to be completed within 90 to 120 days of your company’s yearend. Completion of the same will also result in reporting to CRA (Canada Revenue Agencies) as required and is typically completed by your accounting firm.