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Financial Documents Required

Balance Sheets

A company balance sheet has three parts: assets, liabilities, and ownership equity. The main categories of assets are usually listed first and are followed by the liabilities. The difference between the assets and the liabilities is known as equity, net assets, the net worth, or the capital of the company. Capital equals assets minus liabilities. Stated in another way, Total Assets must always equal Total Liabilities and Capital.
Most loan applications require balance sheets from the last three years. A typical balance sheet looks like this:

balance sheet

Income Statements

The income statement is one of the major financial statements used by accountants and business owners and is sometimes referred to as the profit and loss statement (P&L), statement of operations, or statement of income. It is important because it shows the profitability of a company during the time interval specified in its heading.

Most loan applications require income statements from the last three years. A typical income statement looks like this:

income statement

Cash Flow Projections

Cash flow projections indicate how much cash you expect to generate to repay the loan. A typical cash-flow projection looks like this:

cash flow

Accounts Receivable and Payable Schedules

Accounts receivable are the monies that your customers owe you. They have received the goods or services but they haven’t paid you yet. The Accounts payable are the bills you owe to your vendors. A simple list of both receivables and payables is usually sufficient, including how overdue the bill is. The form would look something like this:

accounts receivable and payable

Personal Financial Statements

Personal financial statements for you and your business partners usually involves personal tax returns for each person. Most lenders was to see the tax returns for each partner for the last three years.

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