Seeking Bank Financing
Applying for financing is a crossroad every business comes to at one time or another. Despite your confidence in the future of your business, the process is time-consuming, intimidating, and full of opportunities to derail if you don’t do everything right.
Different financing resources require different things, but what is common is that the list is typically very long. Most will require one year of bank statements for all accounts, a personal financial statement, several years of tax returns (both business and personal), several year-end financial statements, copies of lease agreements, copies of any other notes or any other obligations, and information about owners and key management.
A common error that businesses make which prevents them from getting the financing they’re seeking is not having the adequate financial data—either it is historically lacking, or it is not timely or accurate.
HMC can help take the stress, time, and guesswork out of seeking financing. As specialists in serving small and mid-sized businesses, we have worked with thousands of companies on financing. Here’s how we can help:
- One of the biggest ways we help is to keep your financial information current and complete, so when the time comes to apply for financing, you don’t need to spend time searching for it, only to find out you don’t have it.
- We can also help with preparing financial ratios, assisting with plans to improve financial ratios, maintaining files for loan documentation, and preparing statements of cash flow.
- We keep up with the ever-changing landscape of rules, regulations, and loan covenants, so we can help you avoid mistakes and pitfalls.
When it comes time to seek financing, we recommend that you meet with us and your banker to obtain a list of requirements for the type loan you’re seeking and begin gathering the information. You should also begin to monitor your financial data to meet the ratios you will need to meet the covenants and ensure the cash flow will be adequate to borrow. With HMC on your team, working with you sidebyside, this process does not have to be overwhelming or time-consuming—and you can provide your banker with exactly what they need.