When it comes to applying for a business loan, thorough preparation is key to success. To ensure a smooth and successful loan application process, you need to provide the bank with comprehensive information about your company and its financials. Here’s a breakdown of the essential information you’ll need to gather:

Company Biography and Profile:

• History & Business Model: Provide a concise overview of your company’s history and its business model. If you’re acquiring a new business, include background information on the acquisition target.
• Proposed Structure and Step Plan: Outline your proposed structure for the acquisition of the business, along with a step-by-step plan for execution.
• Sources and Uses of Funds: Clearly articulate where the funds for the acquisition will come from and how they will be utilised.
• Management Bio: Include bios of the purchasers involved in the acquisition, along with a strategic plan for the business highlighting key management roles.

Financials:

• Audited Accounts: Present audited financial statements for the past three years to provide a comprehensive financial history of your company.
• Management Accounts: Include the most up-to-date management accounts to reflect your current financial position.
• Projections: Prepare profit and loss (P&L) and balance sheet projections for the next three years, including the current year. Additionally, provide detailed cash flow projections for the next 12 months.
• Capital Expenditure: Detail your capital expenditure spend over the past three years and project it for the next three years.
• Debtors & Creditors Listing: Provide an up-to-date listing of debtors and creditors to give insight into your company’s financial obligations.
• Supply Contracts: Include a list of current supply contracts in place for customers to demonstrate revenue stability.
• Revenue Streams: Break down various revenue streams and conduct a gross margin analysis for each stream over the past three years.
• Product/Sales Mix: Confirm your product/sales mix to provide clarity on your revenue sources.

Key Competitors in the Market:

• Competitor Analysis: Identify key competitors in your market and explain how your business differentiates itself from them. Highlight your competitive advantages and unique selling propositions.