Aggarwal Vineeta & Co.Business · Finance · Professional Services
Funding

What should a business prepare before approaching a lender for debt or project finance?

A management-level checklist of the information lenders usually need to understand the business, cash flows and proposed financing.

A lender conversation is easier when the business can explain the funding purpose, existing debt, historical financial performance, projected cash flows, repayment capacity, security or collateral position and the assumptions behind the funding requirement.

Core information

  • Clear funding purpose and amount
  • Historical financial statements and recent management numbers
  • Existing borrowings and repayment obligations
  • Projected revenue, costs, cash flow and debt servicing
  • Key project or working-capital assumptions
  • Promoter contribution and proposed security where relevant

Where businesses often struggle

The issue is often not the absence of data but inconsistency between projections, historical performance, bank information and the commercial story. A funding pack should help the lender understand one coherent case.

Professional scope

Financial modelling and funding-readiness support can help prepare the information and test assumptions. It should not be presented as a guarantee that financing will be sanctioned.