How to Get Ready for a Bank Facility: The Pack Lenders Ask For
Lenders decide on whether the business can repay, how cash moves through it and how reliable the information is. To prepare a bank facility application, assemble clean historical financials, a cash flow forecast, a budget and a clear request (amount, purpose, repayment source, security). Each bank has its own checklist, so confirm requirements with your relationship manager early.
1. Clean historical financials
- Two to three years of financial statements, where the business has them, and current-year management accounts
- Reconciled bank accounts and a clear loan and lease schedule
- Receivables and payables ageing
2. A forecast the lender can test
- 13-week cash flow forecast for the near term
- 12-month budget and a simple projection for the loan term
- Assumptions written down: sales, margins, collection and payment days
3. A clear request
- Amount and purpose (working capital, equipment, expansion)
- Source of repayment and the repayment profile you can afford
- Security or guarantees you can offer
4. Evidence of control
- A monthly close calendar and management pack
- Basic internal controls and approval limits
- VAT returns and other filings up to date
5. Know your numbers before the meeting
Be ready to explain your margin, cash conversion, debtor days and the biggest risks to repayment. A lender who sees you understand the numbers is more comfortable with the request.
Practical tips
- Start three to six months before you need the money so a few clean monthly closes are on record
- Do not time the request for when cash is already tight
- Keep the same story and numbers across every document
- Ask the bank for its application checklist and follow it
Frequently asked questions
Repayment capacity, cash flow, the quality of financial reporting, security and the purpose of the loan. Each bank has its own checklist.
How early should I prepare?Ideally three to six months before you need the funds, so there is time to fix the books and show clean monthly closes.
Can OmniScope360 guarantee a loan?No. Approval is the lender's decision. We prepare the financials, forecast and pack so your application is credible and complete.
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Written by Akram El-Karrar, CPA, from the work we do for startups every week.